HAMA Hamak Gold Limited

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE UNITED STATES, ANY TERRITORY OR POSSESSION THEREOF OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

17 July 2024

Hamak Gold Limited

("Hamak Gold" or the "Company")

Investment Agreement

Hamak Gold Limited (LSE: HAMA) is pleased to announce that it has entered into an investment, whereby the Company will receive 2,424,242,424 ordinary shares in Vela Technologies plc (AIM: VELA) ("Vela") in return for the issue of £300,000 of Hamak unsecured convertible loan notes of £1 each ("CLNs").

Summary Terms of CLN

·    Redeemable 24 months after issue ("Maturity Date") with interest accruing at 10% per annum, compounded annually

·    Vela is subject to a six-month lock-in period from the date of the Agreement during which Vela is not entitled to submit a conversion notice in relation to the Loan Notes.

·    A conversion notice can be issued by Vela on the CLNs any time between six months after issue and the Maturity Date.

·    The conversion price will be the lower of £0.03 or a 25% discount to the five day VWAP immediately prior to conversion. Any accrued interest will be payable in cash on the conversion date

The Company is currently unable to admit new shares to trading on the standard segment of the Main Market without the publication of an FCA approved prospectus and therefore the Company will monitor, in conjunction with Vela, the ability for Vela to convert the CLNs into ordinary shares of the Company.

In addition to the Agreement, Hamak has undertaken to redeem £75,000 of the Loan Notes by making cash payments to Vela at a minimum rate of £10,000 per month, or such higher amount to a maximum of £25,000 per month, with the first payment due to be made on 31 July 2024.

Nimba Project Update

The Company recently announced that it has commenced the next phase of exploration work at its high-grade Ziatoyah gold discovery in the Nimba permit in northern Liberia. Field mapping across a defined area of the 5.7km x 1km strong gold in soil anomaly, where numerous peak values of 1,000ppb (parts per billion) are recorded.  Mapping has revealed several outcrops of geology similar to that which yielded the near-surface high-grade drill intersection of 20m at 7g/t Au, within the soil anomaly envelope.  Detailed geological and structural mapping is ongoing and surface trenching over some targets will commence in the near future, as a pre-cursor to the next planned drilling programme.

Karl Smithson, Executive Director of Hamak Gold commented: 

"This Investment Agreement allows Hamak to enter into a transaction with potential uplift in value for the Company's shareholders. Vela has a current market capitalisation of £1.74 million, whereas its total assets as at 31 March 2024 were £5.54 million, as reported in its quarterly investment update on 10 June 2024. We are therefore pleased to enter into the CLN agreement, which will strengthen Hamak's balance sheet and provide further funding in the short term to progress our promising Nimba exploration programme."

For further information you are invited to view the Company's website at www.hamakgold.com or please contact:

About Hamak Gold Limited

Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold exploration of a portfolio of licences in highly prospective areas of Liberia, where significant drilling results have identified a new high-grade gold discovery with the discovery hole returning 20m @ 7g/t Au near surface in its Nimba licence on the border with Ivory Coast which is located in proximity to the commercial Ity Gold Mine.