09:46:46 EDT Sun 25 Sep 2022
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Hannan Metals Ltd
Symbol HAN
Shares Issued 92,822,109
Close 2022-09-20 C$ 0.26
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Hannan Metals to receive $2.57M investment from Teck

2022-09-20 17:32 ET - News Release

Mr. Michael Hudson reports


Hannan Metals Ltd. has noted that Teck Resources Ltd. has agreed to make a strategic investment in the company by way of a private placement financing.

Pursuant to the private placement, Teck will subscribe for 9.18 million common shares of Hannan at a price of 28 cents per common share for gross proceeds to Hannan of approximately $2.57-million. Prior to the private placement, Teck held no securities of Hannan. Upon closing of the private placement, it is expected that Teck will hold 9.0 per cent of the issued common shares of Hannan. No finders' fees or commissions are payable on the private placement. Closing of the private placement is expected to occur on or before Oct. 7, 2022, subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. The common shares will be subject to a statutory hold period of four months plus a day following the closing date.

Michael Hudson, chief executive officer, states: "Teck's investment in Hannan is a demonstrable vote of confidence in the technical merits of the company's projects as well as our team. Over the last two years Hannan has recognized the significant potential for large copper-gold-silver deposits in Peru and has aggressively staked a large and commanding top 10 tenure position in-country. This bold grassroots strategy has attracted some of the largest industry participants to partner with Hannan, with both Teck and JOGMEC now involved at equity and joint venture levels, respectively.

"With Teck's involvement, we now look forward to accelerating our exploration efforts at the Valiente project, which is located approximately 20 km east from the township of Tingo Maria in central Peru. Valiente forms a previously unknown Miocene-age mineralized belt within a 140 km by 50 km area, where Hannan's exploration team of six geologists and support team has identified at least seven intrusion-related porphyry/epithermal/skarn targets."

In connection with the private placement, Hannan has agreed to grant Teck an equity participation right to maintain its pro rata ownership in Hannan, for so long as Teck's ownership in Hannan remains greater than 5.0 per cent. In addition, Hannan has granted Teck a price protection right, pursuant to which, if within 90 days of the closing date Hannan issues common shares under certain transactions, at a price per common share that is less than the issue price, Teck shall be entitled to receive from the company (for no additional consideration) additional common shares in an amount such that, when added to the number of common shares purchased on the closing date, will equal the number of common shares that the aggregate issue price paid by Teck on the closing date would have purchased at the lower price.

The company intends to use the net proceeds from the private placement for exploration on the company's mineral exploration projects in Peru and Ireland, and for working capital and general corporate purposes.

About Hannan Metals Ltd.

Hannan is a natural resources and exploration company developing sustainable resources of metal needed to meet the transition to a low-carbon economy. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing and advancing mineral projects in Europe and Peru. Hannan is a top-10 in-country explorer by area in Peru.

We seek Safe Harbor.

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