Highlights
Letter of Agreement with arm's length private parties pursuant to which Hannan has been granted the option to acquire up to 100% of the
Airborne EM data models a conductor at the base of 200 metre thick pampa cover over 1.2 km of strike. The conductor is interpreted to be a potential chalcocite enrichment blanket lying above a modelled magnetic body, interpreted to be the potassic core of a copper-bearing porphyry;
The project presents a low cost entry and short timeframe to drilling, while the Company awaits drill permits across its vast Peruvian grassroots copper programs in San Martin and Valiente,
GEOLOGICAL DISCUSSION
The Cerro Rolando project is located within the Paleocene metallogenic belt about 100 km northwest of Calama, in Region 2 of northern
Regional magnetics shows Cerro Rolando to be located on a major north-south trending structure. This structure is thought to be the control for a regional basement high. Historic airborne EM data models a 1.2 km long conductor at the base of 200-metre-thick pampa cover (overburden defined by seismic surveys), just above a modelled magnetic body from historic airborne data. This is interpreted to be a potential conductive chalcocite enrichment blanket above the magnetic potassic core of a copper-bearing porphyry.
Rapid and cost-effective ground geophysical surveys are planned immediately to define accurate drill targets and includes ground magnetics followed by moving-loop ground EM surveys. Hannan is now seeking quotes and will mobilize a geophysical contractor at the start of April, 2023.
The Transaction
Stage 1: Letter of Agreement
The Letter of Agreement grants Hannan the sole and exclusive right to conduct initial assessment work to determine if the property merits entering into a detailed option to purchase agreement. Under the terms of the Letter of Agreement Hannan will pay
Each stage of work represents a 'gated hurdle', such that if each work program (Stages A-C above) does not merit additional exploration, Hannan can exit at any point.
Stage 2: Option to Purchase
Assuming positive results from the Stage 1 Letter of Agreement exploration program, Hannan can then enter into a Stage 2 Property Option Agreement that grants Hannan the right to earn up to an undivided 100% right, title and interest in and to the property. The option is exercisable in three stages over a total period of seven years by spending a total of
Once the Company completes the exercise of the Stage 2 Option, a 2.0% Net Smelter Return ('NSR') Royalty on the property will be payable by Hannan but Hannan has the right to buy one percent (1.0%) of the NSR Royalty at a fair and reasonable valuation provided by an independent valuation, at any time during the pre-feasibility stage of the property. The Optionor will also grant Hannan a right of first refusal for the acquisition of the remaining NSR Royalty up to pre-feasibility.
Hannan will be the operator of the project and has already conducted significant legal, social and environmental due diligence to advance towards the signing of the option and purchase agreement. If the Company exercises its right pursuant to the Stage 1 Letter of Agreement, the Company and the Optionor will enter into the Stage 2 Property Option Agreement which will be subject to
About
Contact:
Tel: +1 (604) 685 9316
Email: info@hannanmetals.com
Forward Looking Statements
Certain disclosure contained in this news release may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other matters identified in the Company's public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. Forward-looking statements in this news release include statement regarding completing the conditions under the Stage 1 Letter of Agreement and the Stage 2 Property Option Agreement and the planned exploration on the Cerro Rolando property. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These risks and uncertainties include but are not limited to: Successful completion of the Stage 1 Letter of Agreement, Hannan's exercise of its right under the Stage 1 Letter of Agreement, TSXV approval of the Stage 2 Property Option Agreement, the political environment in which the Company operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; risks related to negative publicity with respect to the Company or the mining industry in general; planned work programs; permitting and community relations. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and 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 required by law.
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