2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Gold Hawk Enters Into Non-Binding Heads of Agreement to Sell an 85 Percent Equity Interest in the Coricancha Mine
AUG 11, 2009 - 18:22 ET VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announced today that it has entered into a non-binding heads of agreement with a major company to sell an 85% interest in the Coricancha Mine located 90 kms east of Lima, Peru.
Pursuant to the terms set out in the heads of agreement, Gold Hawk would receive US$15 million in cash in return for an 85% interest in its principal Peruvian operating subsidiary, Compania Minera San Juan (Peru) S.A. ("CMSJ"). Gold Hawk's partner would also agree to assume Gold Hawk's guarantee in respect of CMSJ's existing US$13 million senior debt facility and would agree to loan up to an additional US$20 million to fund infrastructure and start-up costs for the Coricancha mine, including the new Chinchan tailings facility.
As part of the heads of agreement, Gold Hawk agreed to grant a 60 day exclusivity period to permit the proposed partner to complete its due diligence review and to negotiate and execute definitive documentation in connection with this transaction. This exclusivity period, along with certain confidentiality provisions constitute binding obligations of the parties under the heads of agreement.
Given the preliminary and non-binding nature of the heads of agreement, we note that there is no certainty that the current proposal will proceed to completion.
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).
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources;
possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gold Hawk Resources Inc.
President & CEO