VANCOUVER, BRITISH COLUMBIA -- 10/29/09 --
Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE: HGC)(PINK SHEETS: HWTHF) is pleased to announce that it has completed the first tranche (the "First Tranche Closing") of the Non-Brokered private placement previously announced on September 24 and October 6 (the "Offering News Releases"). On closing, the Company issued 1,062,500 Units at a price of $0.40 per Unit for gross total proceeds of $425,000. The Company expects to complete a second tranche closing on or before November 6, 2009.
Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of a transferable share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share at a price of $0.50 per Common Share for a period of 12 months following the closing of the Non-Brokered Offering. The Warrants will be subject to an accelerated exercise provision in the event that the Common Shares have closed at or above the price of $0.75 or more for a period of 10 consecutive trading days after closing of the Non-Brokered Offering. If this occurs, the Company can elect to give notice to the Warrant holders, via news release, that the Warrants will expire 30 days following the date of such news release.
All securities issued in connection with the Non-Brokered Offering are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation. All capitalized terms used but not defined in this news release have the meanings ascribed thereto in the Offering News Releases. The First Tranche Closing is subject to the final approval of the TSX Venture Exchange.
Proceeds from the Non-Brokered Offering will be used to fund the continued resource and mine development of the Company's Cassiar Gold Mine and Taurus gold deposit and for general corporate working capital.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties in British Columbia, Canada. Hawthorne is led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne's goal is to become a junior gold producer by working towards production at Cassiar Gold Mine and to continue resource development of the nearby Taurus deposit, as well as the Frasergold deposit in the south central British Columbia Cariboo region. Hawthorne continues to review potential acquisitions, focusing on high quality, advanced gold development opportunities.
ON BEHALF OF HAWTHORNE GOLD CORP.
Richard J. Barclay, President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable.
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 of accuracy of this release.
Contacts:
Hawthorne Gold Corp.
Todd Hanas
Toll Free: 1-866-869-8072
Hawthorne Gold Corp.
604-629-1505
604-629-0923 (FAX)
www.hawthornegold.com
