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Gold Hawk Files First Quarter Financial Results
JUN 1, 2011 - 19:11 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2011) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:GHK) announces its financial results for the quarter ended March 31, 2011. This media release should be read in conjunction with the unaudited condensed consolidated interim financial statements and notes thereto for the quarter ended March 31, 2011, and management's discussion & analysis ("MD&A") for the quarter ended March 31, 2011, both available on SEDAR at www.sedar.com.
All financial information for the quarter ended March 31, 2011 is prepared in accordance with International Financial Reporting Standards ("IFRS") for the first time and reported in United States dollars unless otherwise noted, including this media release. Please refer to Note 2 and Note 17 of the March 31, 2011 and 2010 unaudited condensed consolidated interim financial statements for more information.
Significant advances were made on the three primary areas of activity at Oracle Ridge Copper Mine during the quarter ended March 31, 2011, including the National Instrument 43-101 validation drilling program and drill assay results; process plant and tailings impoundment activities; and, permitting and regulatory programs. More detail on the progress made on these programs during the first quarter is available in the MD&A.
For the quarter ended March 31, 2011, the Company had a net loss of $3.9 million compared to net income of $0.8 million in the 2010 comparative period. Net income in the prior year was primarily driven by the gain on the sale of marketable securities. The current loss consisted of general and administrative expenses of $1.7 million (2010 - $1.0 million) and $2.1 million in exploration and evaluation expenditures (2010 - $Nil).
Included in general and administrative expenses for the quarter ended March 31, 2011 were share-based payments of $0.7 million and an increase in salaries and consultants fees of $0.3 million due to higher staffing and consultant levels.
As at March 31, 2011, total assets were $43.2 million compared to $46.5 million as at December 31, 2010. The difference resulted from increased expenditures relating to the ongoing development of the Oracle Ridge Copper Mine project, including the exploration program, technical studies and permitting activities.
Total liabilities for the period were $5.0 million compared to $5.6 million as at December 31, 2010. They primarily consist of liabilities assumed on the acquisition of the Oracle Ridge Copper Mine project, which includes promissory notes payable of approximately $3.2 million. In January 2011, the Company settled the total liability outstanding for the purchase of land adjacent to the Oracle Ridge property for $0.6 million.
At March 31, 2011 the Company had cash and cash equivalents of $21.8 million, working capital of $20.1 million, and long-term debt of $3.0 million.
About Gold Hawk Resources Inc.
Gold Hawk (TSX VENTURE:GHK) is a Vancouver, Canada-based company with a focus on uncovering overlooked deep-value projects to achieve superior shareholder returns. The Company is the sole owner and operator of Oracle Ridge Mining LLC and copper mine located 24 km northeast of Tucson, Arizona. Gold Hawk has cash on hand of approximately $19 million, minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.
Forward-looking Statement Disclaimer
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") does not intend, and does 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gold Hawk Resources Inc.
Mr. Carlos Escribano
Chief Financial Officer