Tuesday, July 14, 2009

Hana To Take Stake In Botswana Copper/Silver Project

TSX-listed exploration company Hana Mining has agreed to buy an initial, indirect 70% interest in five prospecting licences in Botswana, comprising the Ghanzi copper/silver project.

The company reported on Tuesday that it had concluded a share purchase agreement with the shareholders of Stellent, a privately held corporation located in Botswana, which was the holder of the licences.

The agreement also granted Hana Mining the exclusive right to purchase the remaining 30% share in Stellent.

The Ghanzi project has an inferred resource of 2,9-billion pounds of copper and 51,1-million ounces of silver.

"I am very pleased for the company shareholders and for Stellent, as this represents the conclusion of a process of negotiation which began in 2007, with our securing initial rights to explore the ground at Ghanzi, and it also reflects the value growth in the resource which we have unlocked over that time,” said Hana Mining CEO Marek Kreczmer.

Under the agreement, Hana Mining would pay a cash consideration of $200 00, and issue 166 666 common shares to Stellent. A further 666 666 share purchase warrants would be issued, each warrant entitling the purchase of one additional common share, for a period of 24 months, at a price of C$0,32.

To acquire an additional 20% share in Stellant, Hanna Mining could make a cash payment of $9-million is to be paid upon the completion of a positive bankable feasibility study, the sale of all the issued common shares of Hana Mining to a third party, or at the company’s election.

For the remaining 10%, Hanna Mining would have to issue four-million purchase warrants, each entitling the purchase of one additional common share, at a price of C$2,00 a share.

The Ghanzi project is located in northwestern Botswana. The area contains near surface sediment-hosted copper/silver deposits with a demonstrated cumulative strike length of over 16 km.

Significant infrastructure is planned, or is in place in the region, including a new 800 MW power plant in Botswana, which would provide power for the project and the paved trans-Kalahari highway, which runs from Namibia to South Africa, passes within 15 km of the property.

SourcE: Mining Weekly

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