Hana Mining Ltd.

Hana Mining Ltd.

September 21, 2007 11:02 ET

Hana Mining Announces Completion of Acquisition of African Copper Project and Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2007) - Hana Mining Ltd. (TSX VENTURE:HMG) announces that the TSX Venture Exchange has accepted for filing a Letter of Intent dated June 1, 2007 (the "Agreement") made between the Company, Jatinga (Proprietary) Limited, Alan Simmonds, Timothy Smalley and Hendrik Veldsman (the "Vendors"), pursuant to which the Company has the exclusive right to acquire 70% of the common shares of Stellent (Proprietary) Limited, the holder of five prospecting licences known as the Ghanzi Copper Project ( the "Project"), located in north-western Botswana. The Project consists of 4,370 square kilometers and is host to widespread sediment-hosted copper mineralization (See news release dated June 5, 2007).

Under the terms of the Agreement, the aggregate consideration payable by the Company to the Vendors over a period of three years is US$400,000 cash, 2,500,000 common shares of the Company (1,500,000 common shares within the first year), and upon delivery of a feasibility study, 2,000,000 common share purchase warrants (the 'Warrants') of the Company. Each Warrant entitles the holder to purchase one additional common share of the Company for a period of 12 months from the date of issuance, at a price of C$1.00 per common share. In addition, the Company has agreed to incur 7.5 million Botswana Pulas (approximately US$1.2 million) in exploration and development expenditures on the Ghanzi Copper Project over a three year period and to pay US$94,741 to Jatinga (Proprietary) Limited. The TSX Venture Exchange has also accepted for filing a Finder's Fee Agreement pursuant to which 200,000 common shares of the Company will be issued to an arm's length party, in connection with this acquisition.

The Company also announces that it has closed its non-brokered private placement (see news releases dated July 30, 2007 and August 30, 2007) comprised of 8,230,571 Units at a price of C$0.35 per Unit, for gross proceeds of C$2,880,700. Each Unit consists of one common share and one half of one transferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share in the capital of the Company if exercised on or before March 4, 2009 at a price of C$0.75 per share. In the event that the common shares of the Company trade on the TSX-V at or above the daily volume-weighted average trading price of C$1.00 for 20 consecutive trading days at any time after January 5, 2008, the Company may accelerate the expiry date of such share purchase warrants by giving notice to the holders thereof. In such case, the warrants will expire on the 31st day after the date on which such notice is given by the Company.

The Company has paid finders' fees in connection with a portion of the private placement consisting of C$113,134 cash, 228,900 Units and finders' warrants entitling the holders to purchase up to 552,140 common shares in the capital of the Company at a price of C$0.40 per share if exercised on or before March 4, 2009.

The securities issued in connection with the private placement are subject to a hold period expiring January 5, 2008.

The net proceeds of the private placement will be used to fund exploration work on the Ghanzi Copper Project and for general working capital.


Hana Mining is a junior mineral explorer seeking to acquire, explore and develop precious, base metal and other mineral exploration projects worldwide.

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

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