Cupric Canyon Capital to acquire Canada’s Hana Mining

24 October 2012 (Last Updated October 24th, 2012 18:30)

US-based Cupric Canyon Capital has signed an agreement to acquire all issued and outstanding common shares of Canada's mineral exploration company Hana Mining for C$67m ($67.48m).

US-based Cupric Canyon Capital has signed an agreement to acquire all issued and outstanding common shares of Canada's mineral exploration company Hana Mining for C$67m ($67.48m).

Under the terms of the Business Corporations Act of British Columbia, Cupric will pay C$0.82 in cash for each Hana share representing a premium of 88% to the 20-day volume weighted average price of the shares as of 23 October 2012.

Cupric has completed all technical, legal, and financial due diligence for the transaction, valuing Hana's equity at approximately C$82m ($82.6m), the company said.

The firm already owns an 18.6% stake in Hana on a fully diluted basis, and is set to acquire the remaining stake after the transaction closes in January 2013.

The arrangement is subject to the approval of Hana shareholders and option-holders through a majority vote on the basis of one vote per Hana Share or Hana option.

Upon closing of the transaction, Cupric will conduct design, construction and operational works for the Ghanzi project in the Kalahari copper belt in north-west Botswana, Africa.

The prospect contains an indicated resource estimate of 780 million pounds of copper and 16.4 million oz of silver at a cut-off grade of 0.40% copper. Inferred resources include 3.2 billion pounds of copper and 51.5 million oz of silver at a cut-off grade of 0.40%.