Hana Mining Ltd.

Hana Mining Ltd.

October 20, 2009 14:37 ET

Hana Completes Initial 70% Share Purchase as Part of Agreed 100% Acquisition of Stellent

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2009) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) (the "Company") is pleased to announce that it has completed the purchase of an initial 70% share interest in Stellent (Proprietary) Limited ("Stellent") as announced on July 14, 2009.

Stellent is a privately held corporation based in Gabarone, Botswana and is the holder of a 100% interest in the five prospecting licences comprising the Ghanzi copper-silver project located in Botswana.

The consideration paid by the Company for the purchase of the initial 70% share interest in Stellent consisted of the following:

  • Cash payment of US$200,000;
  • Issuance of 166,666 common shares of the Company, subject to a four (4) month hold period; and
  • Issuance of 666,666 share purchase warrants, each warrant entitling the purchase of one (1) additional common share of the Company for a period of 24 months, at a price of CDN$0.32 per share.

The Company has appointed three (3) members to the Board of Directors of Stellent while the Stellent shareholders have appointed one (1) director.

Pursuant to the terms of the Share Purchase Agreement with Stellent, the Company will purchase the remaining 30% share interest in Stellent in the following manner:

Purchase of an additional 20% share interest:

  • Cash payment of US$9,000,000 to be paid upon the earlier of the announcement of the completion of a positive, bankable feasibility study, the sale of all the issued common shares of Hana Mining Ltd. to a third party or, at the Company's election.

Purchase of the final 10% share interest:

  • Issuance of 4,000,000 share purchase warrants, each warrant entitling the purchase of one (1) additional common share of the Company for a period of 24 months from the date of issuance, at a price of CDN$2.00 per share: such warrants to be issued ten (10) days following the announcement of the completion of a positive, bankable feasibility study.

About Hana Mining's Ghanzi Copper-Silver Project in Botswana

The Ghanzi Project is located in the center of the Kalahari copper belt in northwestern Botswana. The country of Botswana is considered by the Fraser Institute Annual Survey of Mining Companies 2009 country ranking study to offer the most attractive mineral exploration and investment climate in Africa. The Ghanzi property covers 2,200 sq. km., and contains sediment-hosted copper-silver deposits with a demonstrated cumulative mineralized strike length of over 13 kilometres. This favourable geology extends over the entire strike length of 600 kilometres. Hana Mining recently released results of it's first NI 43-101 resource estimate for the Ghanzi Project (see press release dated June 1, 2009), announcing an inferred resource of 2.0 Billion lb. of copper and 34.9 Million oz. of silver contained in 60.4 million tonnes of ore. This resource estimate assumes a 0.75% Cu cutoff grade, and averages 1.51% Cu and 17.98 g/t Ag. The Banana Zone represents 40.7 million tonnes of this total resource (67%), and is the current focus of the Company's drilling efforts and development focus for 2009 and 2010.

Hana Mining is focused on demonstrating that the Ghanzi property represents one of Africa's premier future copper-silver resources.

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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