Nuinsco Resources Limited

Nuinsco Resources Limited

January 30, 2010 19:14 ET

Nuinsco Responds to Gold Hawk's Purported Notice to Terminate Binding Letter Agreement

Nuinsco intends to pursue its legal remedies to the fullest extent possible

TORONTO, ONTARIO--(Marketwire - Jan. 30, 2010) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI)( announces that Friday evening the Company received from Gold Hawk Resources Inc. ("Gold Hawk")(TSX VENTURE:GHK) a notice purporting to terminate ("Termination Notice") the binding letter agreement (the "Binding Agreement") to combine the two companies which was entered into and announced via news release on January 18, 2010.

It is Nuinsco's position that Gold Hawk does not have the right to terminate the Binding Agreement and that Gold Hawk's purported actions to terminate are in breach of the Binding Agreement. Nuinsco intends to pursue its legal remedies to the fullest extent possible.

The decision by Gold Hawk was made without prior discussion or indication to Nuinsco that Gold Hawk had any issues arising from its due diligence process and as a result this action was totally unexpected. The Company has requested but has not received from Gold Hawk any particulars of the basis for the purported Termination Notice.

Less than two weeks ago Kevin Drover, Gold Hawk's President and CEO, emphatically extolled the merits of the proposed combination, stating: "Our shareholders are being accorded an attractive premium for their shares, but we firmly believe that the best lies ahead through equity participation in Nuinsco. The combination of Gold Hawk and Nuinsco is a natural fit. As an existing 9% shareholder of Gold Hawk, Nuinsco understands the tremendous value and potential of the Coricancha Mine. This transaction will create a well capitalized platform with a strong asset base and the creative and experienced board and management group to advance those assets, to acquire new assets and to continue to create value for shareholders."

Nuinsco remains a major shareholder of Gold Hawk and wishes to understand Gold Hawk's strategy to maximize the value of its depleting assets for all shareholders.


Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey and is investigating opportunities in Egypt. In addition to its property holdings, Nuinsco owns approximately 9% of the outstanding common shares of Gold Hawk Resources Inc. and approximately 2% of the outstanding common shares of Victory Nickel Inc. (TSX:NI). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at Should you wish to receive Company news via email, please email and specify "Nuinsco Resources" in the subject line.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Contact Information

  • Nuinsco Resources Inc.
    Rene Galipeau
    Nuinsco Resources Inc.
    Sean Stokes
    416.626.0890 (FAX)
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    416.868.1079 ext. 228
    CHF Investor Relations
    Catarina Cerqueira
    Associate Account Manager
    416.868.1079 ext. 251
    416.868.6198 (FAX)