Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

November 09, 2009 18:01 ET

Gold Hawk Shareholders Approve the Sale of an 85 Per Cent Interest in the Coricancha Mine

Transaction expected to close in November

Share consolidation and stock option plan resolutions also approved

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announces that shareholders have voted overwhelmingly in favour of the sale of an 85 per cent interest in the Coricancha Mine (the "Transaction") to Nyrstar Netherlands (Holdings) BV ("Nyrstar"; NYSE Euronext Brussels: NYR) or its Nominee at a Special Meeting of Shareholders held today. A total of 96.1% were in favour of the transaction.

"Upon completion of the Nyrstar transaction, Gold Hawk will have no debt, no debt guarantees, a 15% interest in the Coricancha Mine and US$15 million in cash - the equivalent of $0.05 per share in cash," said Kevin Drover, Gold Hawk's President and CEO. "Gold Hawk intends to use the proceeds of the transaction to pursue alternative business opportunities in the mining industry."

The Coricancha Mine could be in production during the first half of 2010. It is expected the US$20 million loan that Nyrstar will provide to Compania Minera San Juan (Peru) S.A. ("CMSJ"), the Peruvian operating company, will be sufficient to finance the re-start and expansion of the mine.

The transaction is subject to certain customary conditions, including the approval of the TSX Venture Exchange and the replacement of Gold Hawk by Nyrstar as the guarantor of CMSJ's US$13 million debt facility, which is due in February 2010. In addition, the consent of Gold Hawk's lenders under the provisions of its debt facilities is required.

Shareholders also approved the consolidation of the issued and outstanding common shares of the Company on the basis of every 25 common shares of the Company into 1 common share of the Company and approved the amendment of the 2009 stock option plan to create a rolling plan. Results for all three resolutions proposed are contained in the table below:

ResolutionApproval percentage (%)
Transaction 96.1
Share Consolidation 88.2
Amendment to Stock Option Plan79.7

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. The Company has all 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.

Contact Information