/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES/
VANCOUVER, British Columbia, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Further to its news release of October 27, 2017, Handa Copper Corporation ("Handa Copper" or the "Company") (HEC.V) announces the closing of a non-brokered private placement of 10,000,000 units (each, an “Offered Unit") at a price of $0.05 per Offered Unit (the “Offering”) for gross proceeds of $500,000. The proceeds from the Offering will be used for working capital and general corporate purposes.
Each Offered Unit consisted of one common share of the Company and one-half of one common share purchase warrant, whereby each warrant, subject to an acceleration provision, entitles the holder thereof to acquire one additional common share of the Company at a price of $0.10 for a period of 24 months from the date of issuance. All securities issuable in connection with the Offering are subject to a statutory hold period of four months following the date of issuance.
Handa Copper may accelerate the expiry date of the warrants if the volume weighted average price of the Company’s common shares is equal to or above $0.25 for a period of 20 consecutive trading days (the “Triggering Event”). In such event, the Company may accelerate the expiry date of the warrants to the date that is 30 days following the date on which it sends notice to all warrant holders of the new expiry date (the “Notice Date”). The Company shall also issue a news release on the Notice Date and provide notice of the early expiration date within 10 calendar days of the Triggering Event.
Three directors of the Company participated in the Offering by purchasing an aggregate of 2,627,500 Offered Units. Accordingly, the Offering constituted to that extent a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any shares issued to, nor the consideration paid by such person, exceeded 25% of the Company's market capitalization. Further, neither the Company nor the related party has knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
The Offering is subject to all required regulatory approvals, including the approval of the TSX Venture Exchange.
Jan Nelson, Chief Executive Officer of Handa Copper commented, “We are pleased the Offering was significantly oversubscribed. The large stake taken up by directors of the Company also shows the confidence and commitment from the team. We will use the proceeds to take a fresh look at our assets in Congo and will continue to review new mineral opportunities as they are presented to the Company.”
About Handa Copper Corporation
Handa Copper is actively pursuing the exploration and development potential of a highly significant copper discovery in the Republic of Congo (RoC). The geological parallels between the West Congolian Belt 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 until now. 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 detailed soil sampling and geological mapping will assist the Company to effectively prioritize exploration targets for drilling.
For further information, contact:
Marek Kreczmer
Director
Handa Copper Corporation
Tel: (604) 601-6926
Email: marek@handacopper.com.
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.