Hispania Resources Inc. Announces Closing of Non-Brokered Private Placement

Executive Summary

• Hispania Resources Inc. closed a non‑brokered private placement of 20 million units at $0.025 per unit, raising aggregate proceeds of $500,000.
• Each unit consists of one common share and one warrant to purchase an additional share at C$0.05 for 36 months.
• Proceeds will be used for exploratory work on the company’s three owned mining assets as well as general working capital and administrative expenses.

Key Details

• Units Issued: 20,000,000 units at $0.025 per unit → Gross proceeds: $500,000.
• Unit Composition:
• 1 common share per unit.
• 1 Common Share purchase warrant per unit (exercise price C$0.05, exercisable for 36 months post‑offering).
• Hold Period: Securities subject to a four‑month and one‑day hold period under Canadian securities laws/TSXV policies.
• Related Party Transaction: Rahim Allani subscribed for 1,800,000 units; his ownership increased from ~7.75 % to ~8 % of diluted common shares, plus warrants representing the same percentage.
• Use of Proceeds: Funding exploratory drilling and development at Otero (copper‑zinc), Lumbrales (tin), and Puebla de la Reina (copper‑zinc) projects; also for general working capital and administrative expenses.
• Fees: No commission or finders’ fees were payable in connection with the offering.
• Board Approval: Issuance approved unanimously by the Board, with recusal of interested directors; exemptions relied upon under MI 61‑101 sections 5.5(a) and 5.7(1)(a).
• Regulatory Filings: Early warning disclosure filed per NI 62‑103; no material change report filed within 21 days prior to closing because details were not finalized.

Notable Quotes

(No direct quotes included in the release.)