Handa Copper Corporation

April 29, 2014 07:00 ET

Handa Copper Corporation Announces Transaction to Earn Up to a 100% Interest in Two Copper Projects in Republic of Congo

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 29, 2014) - Handa Copper Corporation ("Handa Copper" or the "Company") (TSX VENTURE:HEC) announced today that it has entered into binding agreements with Renaissance Copper S.A.R.L ("Renaissance") and with Nirvana Resources S.A.R.L ("Nirvana"), each of the Republic of Congo ("Congo"), to earn up to a 100% interest (subject to 10% mandatory state participation) in each of the Maboudou and the Banda-Kayes projects, each located in the Republic of Congo.

The Properties

Renaissance's Maboudou project is located within the department of Niari in northwestern Republic of Congo and consists of a land package covering approximately 3,000 square kilometres. Nirvana's Banda Kayes project has a land package totalling approximately 5,100 square kilometres and is located in the department of Bouenza in the south of the country. Both areas are underlain by the Neoproterozoic metasediments of the West Congolian Belt, a highly prospective geological belt that traverses the Republic of Congo and extends north into Gabon and south into the Democratic Republic of Congo.

The Option

The agreements (the "Option Agreements") with each of Renaissance and Nirvana have the same terms, but are independent of each other and are not cross-conditional. Each Option Agreement provides Handa Copper with an irrevocable and exclusive option to earn interests in each project as summarised below:

  • First Option - an initial 20% interest in consideration for a cash payment of US$200,000 for each project.
  • Second Option - a further 30% interest by proving the first inferred copper resource on the property within 32 months of Research Permit for each project being signed by the President of the Republic of Congo.
  • Simultaneously with the exercise of the Second Option in each project Handa shall be obliged to pay an amount of US$200,000, earning a further 1% interest (total 51%) interest in each project.
  • Third Option - Handa will earn a further 49% interest (total 100%) in each project upon making a cash payment of $3,000,000, which payment will be due following: (i) completion of a Bankable Feasibility Study, to occur within 24 months after the exercise of the Second Option: and (ii) the issue of a Mining Permit for the project. Upon the execution of the Third Option, each Vendor will retain 1.455% production royalty in its respective project.
  • The Option Agreements are subject to the pending signature of the Research Permit applications by the President of the Republic of Congo and to their approval by TSX Venture Exchange.

"I see these agreements as an opportunity for the Company to play a major role in what may prove to be one of the last undeveloped copper provinces in the world," said Jon R. Stacey, President of Handa Copper. "In geological terms, the West Congolian Belt is very similar to the Central African Copperbelt; all the ingredients are present and there are many known copper showings, but it has never been systematically explored. Until recently it has been overshadowed by the offshore petroleum industry elsewhere in Congo, but it is a highly prospective geological belt and we have every reason to believe that large-scale Copperbelt-style deposits like Kansanshi, Lumwana and Sentinel could be present. The Company has sufficient funding to execute the first phase of exploration and will be mobilizing to the field shortly."

Handa's investments in the Maboudou and Banda Kayes projects are consistent with its strategy of identifying copper projects in some of Africa's most prospective geological belts.

About Handa Copper Corporation

The Company is focused on the review of copper opportunities in Africa. Our field geologists are regularly engaged in field evaluation of project submissions and testing in-house exploration concepts. Our goal is to build a portfolio of significant copper projects in Africa.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the Option Agreements, including the terms thereof, and with respect to the Maboudou and Banda Kayes Projects. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, outcome, performance or achievements expressed or implied by the statements. Such factors include, among others, the overarching risk that the options will not be exercised, and risks related to the availability of financing and the future price of metals. With respect to the Maboudou and Banda Kayes Projects, risk factors include the price of metals, results of exploration activities, relations with locals, jurisdictional risks, the availability of exploration equipment, and risks related to the exercise of the Option Agreements. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.

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