Handa Copper Corporation
TSX VENTURE : HEC

Handa Copper Corporation

March 20, 2015 14:20 ET

Handa Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 20, 2015) - Handa Copper Corporation (the "Company") (TSX VENTURE:HEC) is pleased to announce that, further to its news releases dated February 4, 2015, February 26, 2015 and March 11, 2015, it has completed a non-brokered private placement offering (the "Offering") raising gross proceeds of $644,179. The Offering consisted of 9,410,000 units (each, a "Unit") at a price of $0.06 per Unit and 1,105,263 Units at a price of $0.072 per Unit.

Each Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase an additional common share (a "Warrant Share") at an exercise price of $0.12 per Warrant Share for a period of 36 months from closing, subject to the Company's right to accelerate the expiry of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange is equal to, or exceeds $0.36 for a period of 20 consecutive trading days during the term of the Warrant. No broker or finder fees were paid in connection with the Offering.

All securities issued in the Offering are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation, expiring on July 20, 2015. Closing of the Offering is subject to final approval of the TSX Venture Exchange.

The net proceeds from the Offering will be used to fund exploration work on the Company's exploration licenses in the Republic of Congo (RoC) and as general working capital.

Marek Kreczmer directly or indirectly purchased 1,570,786 Units for investment purposes pursuant to the Offering. Mr. Kreczmer directly or indirectly exercised control or direction over 470,396 Shares before completion of the Offering. Following closing of the Offering, Mr. Kreczmer now directly or indirectly holds 2,041,182 Shares representing approximately 10.75% of the outstanding Shares, and 1,148,311 Warrants that, if exercised, would result in Mr. Kreczmer directly or indirectly holding approximately 17.57% of the Shares. Mr. Kreczmer acquired these Units for investment purposes and may, from time to time, acquire additional securities of the Company or dispose of such securities as he may deem appropriate. For the purposes of National Instrument 62-103 early warning reporting, the address of Mr. Kreczmer is Suite 1500, 701 West Georgia Street, Vancouver, British Columbia, V7Y 1C6. A copy of the early warning report being filed by Mr. Kreczmer may be obtained by contacting the Company at (604) 601-6926.

Certain directors and officers of the Company acquired Units under the Offering. Such participation is considered to be a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Handa Copper Corporation

The geological parallels between the RoC and the Central African Copperbelt (CACB), the world's richest copper province, have been recognized since the 1930s. However, sustained modern exploration has never been carried out on the former.

Previously undisclosed archival records acquired by the Company, which included more than 10,000 stream sediment and soil samples, confirm the potential for CACB-style copper deposits on the Company's exploration licenses in the RoC. In addition, new data from regional airborne magnetic surveys and geological mapping will assist the Company to effectively prioritize exploration targets for drilling in the second half of 2015.

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.

Contact Information

  • Marek Kreczmer, CEO
    Handa Copper Corporation
    Tel: (604) 601-6926
    Email: marek@handacopper.com

    Jon Stacey, President
    Tel: +260 966 206 525
    Lusaka, Zambia