BUILDING THE NEXT PHOSPHATE MINING HOUSE

Press Releases

Proposed Debt Financing Transaction for Copper Project

APRIL 2, 2019 (Vancouver, British Columbia) – Handa Mining Corporation (“Handa” or the “Company”) (TSX-V: HAND) is pleased to announce that the Board has elected to proceed with building a processing plant (the “Plant”) to recover copper from the Nababeep Copper Oxide Project, located in northern Cape Province of South Africa, and confirms the proposed debt financing (the “Financing”) of US$750,000 in order to proceed with the construction of the Plant (as outlined in the joint venture agreement (the “JVA”) announced on February 15, 2019).  Pursuant to the JVA, for the first 24 months of production from the Plant, Handa and its lending consortium (collectively, the “Group”) would be entitled to 65% of any profits generated by the Plant (the “Profit Interest”).  Following this period, the Profit Interest payable to the Group would decrease to 33%.   

It is proposed that the Financing would be funded in two tranches: 

  • US$350,000 of the Financing will be advanced by a consortium of five arm’s length lenders (the “Consortium Lenders”) who will provide the funds to Handa on an interest free basis.  The funds will be repayable within two years of commencement of production at the Plant (the “Maturity Date”) and the Consortium Lenders will be entitled to share in an aggregate of 35% of the Profit Interest attributable to the Group on a pro rata basis.  In addition, an aggregate of 1,365,000 common shares of Handa (“Bonus Shares”) and 2,275,000 warrants (“Bonus Warrants”) will be granted to the Consortium Lenders.  Each Bonus Warrant will entitle a Lender to acquire one common share of Handa at a price of $0.05 for a period of four years from the date of issuance.
  • US$400,000 of the Financing will be advanced by Mastomode (Pty) Ltd. (“Mastomode”), a company partially owned by one of the directors of Handa and backed by a private lenders’ group. The funds advanced by Mastomode will be provided on an interest free basis and will mature on the Maturity Date. Mastomode will be entitled to 45% of the Profit Interest attributable to the Group, but will not receive any Bonus Shares or Bonus Warrants. 

Handa will retain 20% of the Profit Interest attributable to the Group. The Plant will be held by Handa Mining S.A., a South African entity owned 47% by Handa and 53% by Mastomode.  As security for repayment of the loans to the Consortium Lenders at the Maturity Date, Handa will pledge all of its shares in Handa Mining S.A. to the Consortium Lenders. 

Completion of the Financing is subject to the approval of the TSX Venture Exchange.  In addition, in order for the Financing to proceed Handa will require approval for the JVA and the share issuances it has agreed to make to the property owners under such agreement.  Full details on the JVA are contained in the Company’s news release dated February 15, 2019.

About Handa Mining Corporation

Handa Mining Corporation (TSX-V: HAND) is a mining and development company. As part of its revitalized strategy, the Company acquired the Mejillones Phosphate Project in Chile, in October 2018, which consists of three exploration and eight exploitation concessions on which Handa is currently evaluating the development strategy.  The Company continues to pursue Joint Venture opportunities in order to gain further exposure to surface mining opportunities that are in the pre-production or production stage. Our vision is to be a self funded mining junior that will deliver a dividend to shareholders on a sustainable basis whilst also growing project development pipeline.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward Looking and other Cautionary Information 

This news release includes certain statements that may be considered “forward-looking statements”. These statements include, but are not limited to, statements with respect to the proposed Financing, construction of the Plant by Handa and the profitability of the Plant. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: Handa will receive approval of the TSX Venture Exchange, Handa will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of the project will be positive, and no geological or technical problems will occur. The Company cannot guarantee that the Financing or the construction of the Plant will complete or that such project would be profitable. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, potential environmental issues or liabilities associated with exploration, development and mining activities, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and tenure and delays due to third party opposition, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by law. For more information on Handa Mining Corporation, investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.

For further information, contact:

Jan Nelson
Chief Executive Officer
Handa Mining Corporation
Tel: (604) 428-7050
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.