Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

August 31, 2009 21:36 ET

Gold Hawk Files Second Quarter 2009 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announces today that it has filed its financial results for the second quarter ended June 30, 2009 on

Major highlights and developments during the second quarter of 2009 included:

- Completed a non-brokered private placement of 25,050,000 Units at a price of $0.05 per Unit for gross proceeds of $1,252,500 million; and

- Finalized documentation related to the US$13 million restructured loan facility.

Subsequent to June 30, 2009 the Company:

- Announced a non-binding heads of agreement to sell 85% of its Peruvian subsidiary, Compania Minera San Juan (Peru) S.A. ("CMSJ") to a potential partner for US$15 million;

- Under the terms of this heads of agreement, the potential partner

-- would assume Gold Hawk's guarantee in respect of CMSJ's existing US$13 million senior debt facility; and

-- would agree to lend CMSJ up to an additional US$20 million to fund infrastructure and start-up costs for the Coricancha Mine.

During the second quarter, Gold Hawk Management focused its efforts on securing financing in order to resume operations at the Coricancha Mine and refinance the US$13 million bridge loan facility due in February 2010. Management held discussions with a number of interested parties and subsequent to the quarter end, a non-binding Heads of Agreement was signed with a major company giving this party the exclusive right to complete due diligence for a period of 60 days.

Under the terms of the Heads of Agreement, Gold Hawk will receive US$15 million in cash for an 85% interest in its operating subsidiary in Peru, Compania Minera San Juan (Peru) S.A. (CMSJ). In addition, the party would also agree to assume Gold Hawk's guarantee of the US$13 million bridge loan facility and agrees to loan CMSJ up to an additional US$20 million to fund the re-start of the Coricancha Mine.

Following the completion of the proposed transaction, Gold Hawk would be debt free with US$15 million cash on hand and own a 15% carried interest in the Coricancha Mine, which could be in production during the first half of 2010.

"Gold Hawk has positioned the Coricancha Mine for a return to production and eliminated its debt and debt guarantee under the proposed transaction," said Mr. Kevin Drover, Gold Hawk's President and CEO. "Gold Hawk management is currently evaluating several opportunities to deploy the cash from the proposed transaction in a manner that will enhance shareholder value."

For complete details of the second quarter ended June 30, 2009, as well as the annual audited Financial Statements and Management's Discussion and Analysis, please see the Company's filings on SEDAR (

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 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.

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