Hawthorne Gold Corp.

Hawthorne Gold Corp.

November 06, 2009 20:24 ET

Hawthorne Closes Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Nov. 6, 2009) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC)(PINK SHEETS:HWTHF) announces that further to its news release of October 29, 2009, the Company closed a final tranche of 340,000 Units (the "Final Tranche") at a price of $0.40 per Unit for additional gross proceeds of $136,000. As disclosed in the Company's October 29th news release, the Company previously closed on 1,062,500 Units (the "First Tranche" and together with the Final Tranche, the "Non-Brokered Offering") at a price of $0.40 for gross proceeds of $425,000. In total, the Non Brokered Offering consisted of 1,402,500 Units for gross proceeds of $561,000.

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 will entitle 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 are subject to an accelerated exercise provision in the event that the trading price of the Common Shares have closed at or above $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.

The Company paid a total of $36,120 in cash and issued 90,300 Finder's Warrants (as such term is defined below), equivalent to 7% of the gross proceeds and 7% of the Units respectively, sourced by eligible finders in respect of certain Units placed under the Non-Brokered Offering. Each Finder's Warrant (a "Finder's Warrant") is exercisable at $0.50 per Common Share for a period of 12 months after closing of the Non-Brokered Offering.

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.

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.


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.

Contact Information

  • Hawthorne Gold Corp.
    Todd Hanas
    Toll Free: 1-866-869-8072
    Hawthorne Gold Corp.
    604-629-0923 (FAX)