HAN.V · 2020-07-14 12:00:00

Hannan Closes Private Placement

Financings

/NOT FOR DISTRIBUTION TO

UNITED STATES

NEWSWIRE SERVICES OR FOR RELEASE,

PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE

OR IN PART, IN OR INTO

THE UNITED STATES

VANCOUVER, BC,

July 14, 2020

/CNW/ -

Hannan Metals Limited

("Hannan" or the "Company")

(TSXV: HAN) (OTCPK: HANNF) is pleased to announce that pursuant to a price reservation filed

with the TSX Venture Exchange (the "

Exchange

") on

June 29, 2020

, and subsequent submission to

the Exchange, the Company received conditional acceptance from the Exchange to proceed with a

non-brokered private placement of up to 4,000,000 units (the "

Units

") with a strategic investor group

(the "

Strategic Investor

"), at a price of

C$0.25

per Unit for aggregate gross proceeds to the

Company of

C$1,000,000

(the "

Private Placement

"). Each Unit comprises one common share and

one-half of one common share purchase warrant. Each whole warrant entitles the holder to

purchase one additional common share at an exercise price of

C$0.35

per common share for a

period of two years expiring on

July 13, 2022

Mr Hudson, Chairman and CEO, states,

"We welcome the new Strategic Investor to Hannan's

working together as we go forward to further enhance shareholder value as we build on our

copper-silver discovery at San Martin in Peru. This deal was struck at the end of June and was

based on a trading price of

$0.295

at the time. Given the subsequent market movement and to

minimize dilution, the Board decided to restrict this placement to the strategic investor alone. We

look forward to advancing our project, as our understanding has grown significantly with our 2020

field results, combined with recent remote sensed mapping which has provided an advanced

geological perspective and overview."

All securities issued pursuant to the Private Placement are subject to a four-month hold period under

applicable securities laws in

Canada

expiring on

November 14, 2020

. The Private Placement is

subject to the final acceptance of the Exchange. No finder's fees or commissions were paid in

connection with the Private Placement.

The Company intends to use the net proceeds from the Private Placement for exploration on the

Company's Peruvian exploration properties and for working capital and general corporate purposes.

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall

there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale

would be unlawful. The securities have not been, and will not be, registered under the United States

Securities Act of 1933, as amended (the "

U.S. Securities Act

"), or the securities laws of any state

the United States

, and may not be offered or sold in

the United States

or to, or for the account or

benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent

registration under the U.S. Securities Act and applicable state securities laws or an exemption from

such registration requirements.

About Hannan Metals Limited (TSX.V:HAN)

(OTCPK: HANNF)

Hannan Metals Limited

is an exploration company developing sustainable and ethical resources of

metal needed to meet the transition to a low carbon economy. Over the last decade, the team

behind Hannan has forged a long and successful record of discovering, financing and advancing

mineral projects in

Europe

and

Peru

https://www.facebook.com/hannan.metals

https://twitter.com/hannanmetals

On behalf of the Board,

"Michael Hudson"

Michael Hudson

, Chairman & CEO

Forward Looking Statements

Certain information set forth in this news release contains "forward-looking statements" and

"forward- looking information" under applicable securities laws. Except for statements of historical

fact, certain information contained herein constitutes forward-looking statements, which include the

Company's expectations regarding future performance based on current results, the use of proceeds

from the Private Placement, final acceptance of the Offering from the Exchange, expected cash

costs based on the Company's current internal expectations, estimates, projections, assumptions

and beliefs, which may prove to be incorrect. These statements are not guarantees of future

performance and undue reliance should not be placed on them. Such forward-looking statements

necessarily involve known and unknown risks and uncertainties, which may cause the Company's

actual performance and financial results in future periods to differ materially from any projections of

future performance or results expressed or implied by such forward-looking statement. These risks

and uncertainties include, but are not limited to: the use of the net proceeds from the Private

Placement, the potential impact of epidemics, pandemics or other public health crises, including the

current outbreak of the novel coronavirus known as COVID-19 on the Company's business, the

granting of additional claim applications in

Peru

, community relations, liabilities inherent in mine

development and production, geological risks, the financial markets generally, and the ability of the

Company to raise additional capital to fund future operations. There can be no assurance that

forward-looking statements will prove to be accurate, and actual results and future events could

differ materially from those anticipated in such statements. The Company undertakes no obligation

to update forward-looking statements if circumstances or management's estimates or opinions

should change except as required by applicable securities laws. The reader is cautioned not to place

undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of

this news release.

SOURCE

Hannan Metals Ltd.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/July2020/14/c5698.html

%SEDAR: 00015885E

For further information:

www.hannanmetals.com; 1305 - 1090 West Georgia St., Vancouver, BC,

V6E 3V7; Mariana Bermudez, Corporate Secretary, +1 (604) 685 9316, [email protected]

CO: Hannan Metals Ltd.

CNW 06:30e 14-JUL-20

← Back to feed