Canadian exploration company Hana Mining said it would buy a 70% stake in five prospecting licences in the Ghanzi copper-silver project in north-western Botswana.

The company has signed a share purchase agreement with the owner of the licence, Stellent, which grants exclusive rights to purchase the remaining stake, subject to conditions.

Under the agreement, Hana will pay Stellent $200,000 in cash and issue 166,666 common shares and 666,666 share purchase warrants to acquire 70% interest.

Following the transaction, Hana will appoint three members to Stellent’s board while Stellent shareholders will appoint a director.

Hana Mining CEO Marek Kreczmer said the deal establishes a clear, defined path to 100% ownership of the project for Hana.

The 2,200km2 Ghanzi project has inferred resource of 2.9 billion pounds of copper and 51.1 million ounces of silver.