SOURCE: Hunt Gold Corporation

August 07, 2008 11:21 ET

Hunt Gold Corporation -- Update on Hostile Bid

Company Updates Its Stockholders on Hostile Bid for the Company

NEW YORK, NY--(Marketwire - August 7, 2008) - Hunt Gold Corporation (PINKSHEETS: HGLC) confirmed on August 1, 2008 that it had received an offer for the Company which was valued at a price per share of US$0.025. There were a number of conditions attached to this offer and the Board of Directors required more time before advising stockholders as to whether or not they could recommend this bid to stockholders.

We have been served with notice that this Private Equity Group has acquired an additional amount of 20,700,023,000 shares of the Company's shares of restricted Common Stock. They now hold an amount of 93,150,103,500 shares of the Company's stock; amounting to 31.7% of the Company's Common Stock.

The Board of Directors has been contacted by stockholders who represent substantial blocks of the company's outstanding stock who have indicated that they 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. The Board of Directors believes that this Private Equity Group will have to substantially raise their offer price should they wish to assume control of the Company.

We were served notice and were provided with proof on August 1, 2008 that this Private Equity Group had already acquired a block of stock in the Company, amounting to 72,450,080,500 shares of the Company's shares of restricted Common Stock. They paid an amount of US$0.025 per share to acquire these shares. That gave them a 24.6% interest in the Company as at August 1, 2008.

Furthermore, this Private Equity Group has come to an agreement with Fortress Financial Group, Inc., who has undertaken not to dispose of any its "free trading" shares in the 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 the Company on August 1, 2008.

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. This is extremely unlikely to happen unless the offer price per share is raised by the Private Equity Group or any other bidder, and very substantially.

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