Hawthorne Gold Corp.
TSX VENTURE : HGC

Hawthorne Gold Corp.

December 28, 2007 09:30 ET

Hawthorne Gold Closes $3 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 27, 2007) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) announces it has closed the non-brokered private placement announced on December 19, 2007, to raise gross proceeds of $3 million. The private placement consists of 1,875,000 units priced at $1.60 per unit. Each unit consists of one common share and one-half warrant. Each whole warrant is exercisable for a period of 18 months from the date of close, to acquire one common share at $2.25 per share.

Any shares issued in connection with the private placement are subject to a four-month hold period expiring on April 20, 2008. The Company paid a finder's fee of 92,813 common shares, equivalent to 5% of the proceeds sourced by eligible finders in respect of certain units placed under the financing. Proceeds of the financing will be used to make the first payment pursuant to the Taurus option agreement, costs to complete the merger transaction between Hawthorne and Cusac Mines Ltd. announced on December 19, 2007, and for general working capital.

As a result of closing of the private placement, Praetorian Offshore Ltd., a Cayman Island based fund, became a new insider by virtue of owning approximately 11% of the outstanding common shares of the Company.

The Company has remitted the first $1 million payment required under the Taurus option agreement with American Bonanza Gold Corp. ("Bonanza"), announced on December 19, 2007. Pursuant to the option agreement, the Company can acquire 46 mineral claims near Cassiar, British Columbia from Bonanza in consideration of an aggregate $6 million by December 22, 2009 and 250,000 shares of the Company by December 22, 2008. A further $3 million is payable upon completion of a positive feasibility study recommending production, or actual production, whichever comes first.

The Taurus Property covers the majority of the Taurus Deposit that hosts an inferred resource estimate of 1.04 million ounces of gold consisting of 32.4 million tonnes at a grade of 1.0 g/t (National Instrument 43-101 technical report dated May 15, 2007, by Wardrop Engineering is available at www.sedar.com).

Michael Redfearn, P.Eng, a Qualified Person as defined by National Instrument 43-101, has approved the technical content of this news release.

About Hawthorne Gold Corp.

Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne Gold is managed by well-respected mining leaders Richard Barclay and Michael Beley. Together with mining veteran Michael Redfearn, and a strong board of Directors from across the mining industry, the goal is to become another successful gold company through focused exploration initiatives, continued development of the Frasergold mineral deposit, the Taurus gold deposit and potential acquisitions of other projects.

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 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.

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

Contact Information

  • Hawthorne Gold Corp.
    Robert Ferguson
    (604) 629-1505 or Toll Free: 1-888-629-1505
    (604) 629-0923 (FAX)
    Website: www.hawthornegold.com