SOURCE: Hunt Gold Corporation

August 01, 2008 12:31 ET

Hunt Gold Corporation -- Bid Goes Hostile

Company Confirms That the Bid for the Company Has Gone Hostile

NEW YORK, NY--(Marketwire - August 1, 2008) - Hunt Gold Corporation (PINKSHEETS: HGLC) confirmed this morning that it had received an offer for the Company which was valued at a price per share of US$0.025 per share. There were a number of conditions attached to this Offer and the Board of Directors requires more time before advising stockholders as to whether they can recommend this bid to stockholders.

The Board of Directors cautioned stockholders that the offer was made by a highly aggressive Private Equity Group which may attempt (and succeed) to purchase large blocks of this Company's stock; thereby giving it control of this Company through the "Back Door." We stated that we were powerless to stop this; should it occur.

We have just been served notice and have been provided with proof that this Private Equity Group has already acquired a block of stock in your Company; amounting to 72,450,080,500 shares of your Company's shares of restricted Common Stock. They paid an amount of US$0.025 per share to acquire these shares. This gives them a 24.6% interest in your Company.

Furthermore they have come to an agreement with Fortress Financial Group, Inc. who has undertaken not to dispose of any its "free trading" shares in your Company; and to co-operate with the Private Equity Group in their takeover bid for this Company. Fortress Financial Group, Inc. served notice to this effect upon your Company at 10h00 EST this morning.

The Private Equity Group, together with Fortress Financial Group, Inc. have now rendered the 51% voting control given to certain Investment Groups null and void and have effectively raised the stakes in what may, or not become a bidding war for this Company; this is entirely dependent upon any other serious offers for your Company.

It seems extremely likely that this Private Equity Group wishes to acquire 100% of the Company, and to then merge it with another Gold Company already under their control.

The Private Equity Group has made it extremely clear that they are going to be hostile going forward, primarily due to your Board not accepting their offer immediately. They are now in the process of approaching other stockholders with the intent of purchasing their shares of the Company's Common Stock. They intend to file a Form 13(d) with the SEC to this effect.

The Board of Directors has been contacted by stockholders who wish to remain as long-term stockholders in this Company, and have no desire to sell their stockholdings at US$0.025 per share to the Private Equity Group. Based upon these facts, the Board urges stockholders to exercise caution in their dealings until such time as we are able to provide them with an accurate valuation of this Company's assets.

ABOUT HUNT GOLD CORPORATION

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "Gladstone Lookout," "Lady Alde," "Lookout Silver," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal" interests. The Company is completing the sale of its "American Molygold" interests.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • For further information contact:
    Hunt Gold Corporation
    E Mail: Email Contact
    Telephone: (954) 840-6956
    Contact: Mr. Michael G Saner