Hansa Closes Private Placement Financing
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NEWS RELEASE September 1, 2020
Hansa Closes Private Placement Financing
Vancouver, Canada – Hansa Resources Ltd. (“Hansa” or the “Company”) (TSXV-HRL) announces that
the Company has completed its placement financing announced on July 31, 2020 by issuing 1 2,500,000
units of the Company (the “Units”) at an issue price of $0.035 per Unit to raise gross proceeds of $437,500.
Each Unit comprised one common share and one-half of one common share purchase warrant. Each whole
warrant (a “Warrant”) entitles the holder to purchase one additional common share of the Company at an
exercise price of $0.05 for a period of one year from closing.
Certain directors of the Company participated in the financing and purchased an aggregate of 5,000,000
Units for aggregate gross proceeds of C$175,000. The participation of the directors in the financing
constitutes a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The Company is exempt from the requirements
to obtain a formal valuation or minority sharehol der approval in connection with the participation in the
Private Placement in reliance on the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61 -101,
respectively, as the fair market value of the transaction does not exceed 25% of the Company’s market
capitalization. The Company intends to file a material change report in respect of the related party
transaction on SEDAR.
The Company undertook this financing in order to augment its working capital to pursue exploration
properties of merit. The net proceeds of this financing of approximately $430,000 will be used as to $50,000
to investigate property acquisition opportunitie s and the balance of $380,000 will be for working capital
including audit fees of $50,000 for June 30th 2020 and 2021 audits; accounting fees of $36,000, transfer
agent costs of $13,000, rent of $6,000 and legal costs of $15,000 for the period September 1 2020 to
September 30 2021; annual meeting costs of $35,000 for Company’s next annual meeting, including
preparation, printing and mailing and TSX sustaining fees of $6,000 for 2021. The balance of $219,000
will be held in cash and can be used for similar costs as above but further down the track and for some
exploration work and other such uses that arise. None of the placement funds will be utilized for
management compensation.
ABOUT HANSA RESOURCES LTD.
Hansa Resources Limited is a TSXV listed and Frankfurt traded Canadian mineral exploration company
engaged in the acquisition, exploration and development of base and precious metal properties. Hansa
Resources is committed to building shareholder value through minimizing risk and max imizing potential
value of the C ompany's projects, utilizing Hansa's highly experienced, flexible and successful Board of
Directors and Management.
On behalf of the Board,
"John Nugent"
John Nugent, President
Neither the TSX Venture Exchange or 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.
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Cautionary Note Regarding Forward-Looking Statements: This news release includes certain forward-looking statements and
forward-looking information (together, “forward -looking statements”). All statements other than statements of historical fact
included in this release, including, without limitation, statements regard ing the the Option Agreement, the Company’s option to
acquire an indirect interest in the License, if granted, and the grant of the License, other future plans and objectives of the Company
and prospects and potential mineralization on the License area are forward-looking statements. There can be no assurance that
such statements will prove to be accurate and actual results and future events may vary from those anticipated in such statements.
Important risk factors that could cause actual results to differ materially from the Company's plans or expectations include failure
to obtain TSX Venture Exchange acceptance, failure to remove conditions to completion of the transaction pursuant to the Option
Agreement (the ”Transaction”), including the failure of the License to be granted to Poseidon, failure to raise sufficient funds on
the proposed terms or at all, and risks associated with mineral exploration, including the risk that actual results of exploration will
be different from those expected by management a nd the risk that potential mineralization will not be upgraded or verified, and
the other risks disclosed in this news release. The forward -looking statements in this news release were developed based on the
assumptions and expectations of management, incl uding that TSX Ventu re Exchange acceptance for the T ransaction will be
obtained, the License will be granted to Poseidon, the other conditions to completion of the Transaction will be satisfied, required
fundraising will be completed, the other assumptions disclosed in this news release and that the risks described above will not
materialize. There can be no assurance that the Transaction will complete. 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,
except as otherwise required by applicable securities legislation.