Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

November 28, 2007 10:46 ET

Gold Hawk to Refinance Debt Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2007) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce the Company has signed an indicative term sheet to refinance its current credit facility with Natixis. The total available funding for expenditures related to the Coricancha mine will be increased to US$10 million and the term of the facility will be extended to November 2009. Closing of the facility, expected in January 2008, is subject to due diligence as well as satisfactory documentation and regulatory approval.

The existing loan facility with Natixis is in two Tranches with US$4,166,667 and US$2,083,333 presently drawn on Tranche A and B respectively, and bearing interest at LIBOR + 3.5% and LIBOR + 4.5%, respectively. Under the existing terms of the loan, both Tranches are being repaid with total monthly principal repayments of US$625,000 plus associated interest through September 2008.

Under the terms of the refinancing, the current debt repayment will be deferred until October 2008 and the credit facility will be consolidated into a single US$10 million facility. Additional draw downs under the new facility will be available for working capital and capital expenditures until September 30, 2008 after which repayment will be required through to the facility's maturity on November 30, 2009.

This proposed refinancing will increase the Company's available working capital, and, along with current cash on hand, is expected to be sufficient to fund operations at the Coricancha mine as ramp up of the operations to full production levels are achieved.

The refinancing will be subject to a one time fee of 2.0% of the amount of the total facility, bear interest at LIBOR + 3.75% per annum, and, subject to regulatory approval, will include 900,000 Gold Hawk warrants, with each warrant being exercisable for one common share of Gold Hawk at a strike price of $0.485. The warrants to be issued upon closing of the refinancing, will expire upon the maturity of the facility on November 30, 2009, and the common shares issuable upon the exercise of the warrants will be subject to a "hold period" pursuant to applicable Canadian securities laws which will expire four months and one day after the date of issue of the warrants.

About Gold Hawk Resources Inc.

Gold Hawk is a Canadian based precious and base metals producer with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha Mine in Peru in March of 2006, the mine and concentrator have been refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day, with potential for expansion to 900 tonnes per day during 2008. The Company, through its subsidiary, Compania Minera San Juan (Peru) S.A., has approximately 600 employees.

Gold Hawk is based in Vancouver, British Columbia, Canada and trades on the TSX-V under the symbol CGK, and is operated by an experienced management team. The Company also has exploration properties in Peru and Canada (Quebec), and is actively pursuing other growth opportunities.

For further information, contact:

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Gold Hawk Resources Inc.
    Mr. C.K. Benner
    Executive Chairman
    (604) 689-9282
    Gold Hawk Resources Inc.
    Mr. Kevin Drover
    President and CEO
    (604) 689-9296