Hannan and JOGMEC partner at San Martin copper-silver project in Peru

ID: 1562664
recent pressrelease next pressrelease

(PresseBox) -

Hannan Metals Limited (?Hannan? or the ?Company?) (TSXV: HAN) (OTCPK: HANNF - https://www.commodity-tv.com/ondemand/companies/profil/hannan-metals-ltd/) Agreement?) with Japan Oil, Gas and Metals National Corporation ("JOGMEC"). Under the Agreement, JOGMEC has the option to earn up to a 75% beneficial interest in the San Martin Project by spending up to US$35,000,000 to deliver to the joint venture (?JV?) a feasibility study. The San Martin Project covers 656 square kilometres of Hannan?s 940 square kilometre Peruvian holdings (Figure 1). Hannan will continue to progress exploration on its remaining Peruvian projects.


  • The Agreement grants JOGMEC the option to earn an initial 51% ownership interest by funding US$8,000,000 in project expenditures at San Martin over a 4-year period, subject to acceleration at JOGMEC''s discretion. JOGMEC?s minimum commitment is to fund US$1,000,000 from 01 April 2020 to 31 March 2021 and JOGMEC has agreed to reimburse Hannan for all project related costs from 01 April 2020;
  • JOGMEC, at its election, can then earn:
    • an additional 16% interest for a total 67% ownership interest by achieving either a prefeasibility study or funding a further US$12,000,000 in project expenditures in amounts of at least US$1,000,000 per annum (for a US$20,000,000 total expenditure); and,
    • subject to owning a 67% interest, a further 8% interest for a total 75% ownership interest by achieving either a feasibility study or funding a further US$15,000,000 in project expenditures in amounts of at least US$1,000,000 per annum (for a US$35,000,000 total expenditure);
  • Should JOGMEC not proceed to a prefeasibility study or spend US$20,000,000 in total, Hannan shall have the right to purchase from JOGMEC for the sum of US$1.00, a two percent (2%) Participating Interest, whereby Hannan Metals? Participating Interest will be increased to fifty-one percent (51%) and JOGMEC?s Participating Interest will be reduced to forty-nine percent (49%);
  • At the completion of a feasibility study, JOGMEC has the right to either:
    • Purchase up to an additional ten percent (10%) Participating Interest from Hannan Metals (for a total 85% maximum capped Participating Interest) at fair value as determined in accordance with internationally recognized professional standards by an agreed upon independent third-party valuator; or
    • Receive up to an additional ten percent (10%) Participating Interest from Hannan (for a total 85% maximum capped Participating Interest) in consideration of JOGMEC?s agreement to fund development of the project, by loan carrying Hannan until the San Martin Project generates positive cash flow;
  • After US$35,000,000 has been spent by JOGMEC and before a feasibility study has been achieved, both parties will fund expenditures pro rata or dilute via a standard
  • If the Participating Interest in the Joint Venture of any party is diluted to less than 5% then that party?s Participating Interest will be automatically converted to a 2.0% net smelter royalty (?NSR?), and the other party may at any time purchase 1.0% of the 2.0% NSR for a cash payment of US$1,000,000;
  • Hannan will manage exploration at least until JOGMEC earns a 51 per cent interest, after which the majority participant interest holder will be entitled to act as the operator of the joint venture; and
  • Initial exploration activities will focus on the collection of the geological, geophysical, and geochemical datasets in the JV project areas. The first phase of exploration is expected to conclude March 2021.

Mr Michael Hudson, CEO, states: ?We are privileged to have the Japanese government-owned JOGMEC elect to partner with us on the San Martin copper-silver project.tion on its other projects?.

Overview of the San Martin Copper Silver Project

The San Martin Project is located in north-eastern Peru.

San Martin encompass a new, basin-scale high-grade sediment-hosted copper-silver system situated along the foreland region of the eastern Andes Mountains. Geologically, analogues include the Spar Lake sediment hosted KGHM Polska Mied? (KGHM) operate thelargest silver producing mine in the world, more than twice the production of any other operation, and also the sixth biggest copper miner on earth.

Hannan recognized the significant potential for large copper-silver deposits in this part of Peru and has aggressively staked a commanding position of prospective where mineralized outcrops and boulders have been discovered in context with a consistent mineralized horizon geology over 120 kilometres of combined strike.tres north of Sacanche, where high-grade copper and silver mineralization has been discovered over 15 kilometres of strike within at least 2 structural corridors. Grab samples from 19 mineralized boulders (>0.1% copper) range in grade from 0.1% to 8.3% copper and 0.2g/t silver to 109g/t silver with an average grade of 2.8% copper and 27.2g/t silver (Figure 1). Channel samples are considered representative of the in-situ mineralization samples and sample widths quoted approximate the true width of mineralization, while grab samples are selective by nature and are unlikely to represent average grades on the property.

Initial exploration activities under the Option and Joint Venture Agreement will include geological mapping and prospecting, geochemical rock chip, soil and stream sediment sampling and trial geophysical surveys. The first phase of exploration is expected to conclude March 2021.

The Transaction remains subject to acceptance of filings with the TSX Venture Exchange

About Japan Oil, Gas and Metals National Corporation (JOGMEC)

JOGMEC is a Japanese government independent administrative agency which among other things seeks to secure stable resource supply for Japan. JOGMEC has a strong reputation as a long term, strategic partner in mineral projects globally. The mandated areas of responsibilities within JOGMEC relate to oil and natural gas, metals, coal and geothermal energy. JOGMEC facilitates opportunities with Japanese private companies to secure supply of natural resources for the benefit of the country''s economic development.

About Hannan Metals Limited (TSXV:HAN) (OTCPK: HANNF)

Hannan Metals Limitednd Peru.

Mr. Michael Hudson FAusIMM, Hannan?s Chairman and CEO, a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

Forward Looking Statements

Certain disclosure contained in this news release, including the Company?s expectations regarding the Agreement and the payments and earn-in upon the successful completion of certain milestones, 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. 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.

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

More information:
http://https://www.luckycat777.com/joker/download https:// https://www.readersdigest.co.uk/lifestyle/technology/5-ways-to-have-a-better-mobile-gaming-experience https:// https://www.mister-pool.de/stahlwandpool/ https://

Keywords (optional):

Company information / Profile:

PressRelease by


PressContact / Agency:

published by: PresseBox
print pressrelease  send to a friend  

Date: 11/30/2020 - 03:20
Language: English
News-ID 1562664
Character count: 6082
Firma: Swiss Resource Capital AG
Ansprechpartner: Feedback to businesspress24.com about Pressrelease-id:
Stadt: Vancouver, Canada


Number of hits: 164


Direct Link to this PressRelease:

We would appreciate a link in your News-, Press- or Partner-Site.

Comments on this PressRelease

All members: 9 438
Register today: 0
Register yesterday: 0
Members online: 0
Guests online: 92

Don't have an account yet? You can create one. As registered user you have some advantages like theme manager, comments configuration and post comments with your name.