(Dallas, TX. – September 29, 2011) StockGuru Shines its Spotlight Hana Mining Ltd. (TSX-V: HMG)(FRANKFURT: 4LH) The Company advised yesterday that together with its auditors, certain deficiencies have been identified in its annual October 31, 2010 audited financial statements. As a result, the Company has filed on SEDAR restated financial statements and Management Discussion and Analysis for the year-ended October 31, 2010, and for the quarters subsequently ended on January 31, 2011 and April 30, 2011. The Company closed on September 28, 2011, at $1.20, trading in a fifty-two week range of $1.12 to $5.68.
These restatements were issued due to a change in interpretation on the accounting treatment surrounding the acquisition of the Company’s 70% owned subsidiary, Stellent Proprietary Limited (“Stellent”). Stellent holds the prospecting licenses which make up the Company’s Ghanzi project located in Botswana.
In addition, the Company has also filed the corresponding certifications as set out in MI 52-109 Certification of Disclosure in Issuer’s Annual and Interim Filings.
The restatement to the annual October 31, 2010 financial statements is summarized below:
|As previously reported
|Mineral property costs||19,145,346||2,461,012||21,606,358|
|Future income tax liabilities||(392,820)||(1,843,352)||(2,236,172)|
The restatement resulted in the Company recording $1,119,783 in the Equity Section of the Balance Sheet to reflect the 30% of Stellent which it does not currently own. There have been no changes to the cash position or the operations of the Company. The changes made are non-cash in nature and have no impact whatsoever on the financial situation and the operations of the Company. The announcement of the restatement coincides with the Company’s application for a listing on the Botswana Stock Exchange.
The Company continues with its aggressive project development program and remains strongly capitalized with over $16 million in its cash reserves.
About Hana Mining’s Ghanzi Copper-Silver Project in Botswana:
The Ghanzi Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Ghanzi property covers 2,149 square kilometres, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres. This favorable geology extends over an estimated strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project on December 20, 2010, announcing an Indicated mineral resource of 762 million pounds of copper and 16 million ounces of silver from 37.4 million tonnes at a grade of 0.93% copper and 13.4 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 5.6 billion pounds of copper and 85.4 million ounces of silver from 423.9 million tonnes. This Inferred mineral resource estimate consists of 225.4 million tonnes grading 0.64% Cu and 8.1 g/t Ag in the Banana Zone, 20.7 million tonnes grading 1.23% Cu and 8.7 g/t Ag in Zone 5, 16.7 million tonnes grading 0.86% Cu and 4.0 g/t Ag in Zone 6, and 161.1 million tonnes grading 0.45% Cu and 3.6 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.30% Cu.
The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization, particularly between sections 49700 to 52000 on the North limb and sections 63000 to 71000 on both the North and South limbs, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development.
The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study is currently underway (funded by the World Bank and the governments of Botswana and Namibia) to support completion of a rail line link that would connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast. The closest existing railhead to port is at Gobabis, in Namibia, approximately 550 km from our property. Construction has begun on the 600MW expansion of the government-owned Moropule Power Plant, having secured US$825 million project funding in May 2009. The Ghanzi Copper-Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 15 km of the property.
The Ghanzi property is one of Africa’s premier future copper-silver resources.
Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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