Oracle Ridge Copper Mine - Tucson, Arizona
2.17% copper - Production facility construction is expected to begin in the first half of 2012
Message: Gold Hawk Completes Restructured Loan Agreement
| May 8, 2009 |
| Gold Hawk Completes Restructured Loan Agreement |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that it has signed a final loan agreement with its lender in connection with the Company's US$13.0 million restructured loan facility. The funds were advanced to the Company on February 13, 2009 (see February 17, 2009 media release "Gold Hawk receives US$2.0 million from restructured loan") and are being used to support ongoing activities at the Coricancha Mine and for general corporate purposes. The loan repayment date will be February 13, 2010, which follows the Company's planned restart of production later this year once re-start financing is in place. The Company announced the original signing of the indicative term sheet for the restructured loan on February 2, 2009. "With the debt repayment extended to 2010, strong funding support from our lender and effective cost management in place, Gold Hawk is positioned to return the Coricancha Mine to production," said Mr. Kevin Drover, Gold Hawk's President and CEO. "With continued strong gold and silver prices and a proven revenue stream from zinc and lead as by-products bolstering the bottom line, Gold Hawk is well positioned to provide excellent value to our shareholders." The loan bears interest at 12.0% per annum. All fees and interest associated with the new loan agreement are capitalized and become part of the new loan facility. The Company has issued the lender 20,000,000 bonus warrants to purchase common shares at an exercise price of $0.05 for the first year and $0.10 for the second year of the two-year warrants. Associated with the restructured loan, the Company has granted the lender a 2.5% Net Smelter Return Royalty for future Coricancha Mine production. The Company has the option to reduce the royalty rate to 1.5% in consideration for a US$1.0 million payment. Gold Hawk has also issued the lender 2,985,067 bonus shares in consideration of a loan extension granted in October 2008 and in lieu of 1,500,000 warrants and 3,000,000 shares that were to be issued under the original terms of the extension. The new loan agreement and all associated fees and bonus securities will be subject to certain conditions, including receipt of final approval of the TSX Venture Exchange. About Gold Hawk Resources Inc. Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious metals company with reserves and resources containing gold, silver, lead, zinc and copper and a near-term production project at the Coricancha Mine and 600 tonnes of ore per day processing facility, located 90kms east of Lima, Peru. On January 7, 2009 the Company received its final permit to construct a new permanent tailings facility at Chinchan and has all of the other permits required for the re-start of the mine. 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). |
Loading...
Loading...
New Message
Please
login
to post a reply