West Hawk closes $11.62-million private placement

2008-07-15 21:03 ET - News Release

Dr. William Hart reports

WEST HAWK ANNOUNCES CLOSING OF PRIVATE PLACEMENT

West Hawk Development Corp. has closed the previously announced brokered private placement of 17,015,714 flow-through common shares at a price of 35 cents per flow-through common share and 18,904,516 units at 30 cents per unit, for gross proceeds to the company of $11,626,854.70. Each unit consists of one non-flow-through common share of the company and one-half of one non-transferable common share purchase warrant. Each whole warrant is exercisable into one additional non-flow-through common share of the company for a period of 24 months following the closing at an exercise price of 50 cents per share.

Union Securities Ltd. acted as agent in connection with the private placement. In consideration for providing its services in the private placement, the agent received: a cash commission in the amount of $813,879.83, representing 7 per cent of gross proceeds of the private placement; a work fee of $25,000 plus GST; and 2,514,416 options to purchase that number of units of the company (representing 7 per cent of the total number of FT shares and units sold in the private placement) at a price of 30 cents per unit until July 15, 2010.

"We very much appreciate the efforts of Union Securities in helping to advance the British Columbia Groundhog project and the Colorado gas project," said Dr. William Mark Hart, president and chief executive officer of West Hawk.

All the securities of the company issued to the subscribers and to the agent pursuant to the private placement are subject to a hold period which under the applicable securities laws and the exchange policies will expire on Nov. 16, 2008.

The proceeds raised will be used for exploration expenditures at Groundhog, the company's British Columbia anthracite PCI coal project, the Figure Four project in the Piceance basin, Colorado, to fulfill the company's 2008 drilling and development obligation, and for general working capital.

We seek Safe Harbor.