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Oracle Ridge Copper Mine - Tucson, Arizona
2.17% copper - Production facility construction is expected to begin in the first half of 2012
Message: Debt Repayment
| December 31, 2008 |
| Gold Hawk Provides Status Update on Debt Repayment |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 31, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) advises that the Company is unable to repay its principal debt owing of approximately US$9.7 million. The debt was due for repayment on December 31, 2008 following an extension agreed upon by Gold Hawk's lenders earlier this year. The loan is secured by the Company's wholly owned Peru subsidiary, Compania Minera San Juan (CMSJ) and its assets, including the Coricancha mine 90 kms east of Lima. The Company and its primary lenders have been in active discussions to extend the repayment date but have not reached an agreement as of close of business today. For more detailed information regarding the Company, please see the most recent financial statements and management's discussion and analysis as well as other information posted to SEDAR.com. About Gold Hawk Resources Inc. Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious and base metals company with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha mine in Peru in March 2006, the mine and concentrator were refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day. In early May 2008, during a regular inspection of its facilities, the Company detected evidence of ground movement uphill and near the tailings handling area and processing plant. As a precautionary measure, company management immediately suspended plant operations and tailings placement pending further investigation of the extent of the movement. Geotechnical consultants subsequently determined the cause of the movement was due to excessive irrigation by third parties of the hillside above the tailings and processing plant. In consultation with authorities, a number of mitigation measures were immediately implemented, including termination of the use of the irrigation system, installation of instrumentation to detect ground movement and de-watering of the affected area. Mining operations, as well as the crushing and grinding circuit, are not affected. Due to the Company's proactive steps to mitigate landslide risk, as of the end of July 2008 the ground movement effectively ceased. To further assist in minimizing the risk to people, the environment and property, on July 18, 2008, the Peruvian government issued an Emergency Decree declaring a State of Emergency in the District of San Mateo. Gold Hawk expects to return to production in the second quarter 2009 following the issuance of a permit for the permanent Chinchan tailings handling area. Gold Hawk is based in Vancouver, Canada and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compania Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec), and are actively pursuing other growth opportunities. |
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