Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

May 08, 2009 18:57 ET

Gold Hawk Completes Restructured Loan Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that it has signed a final loan agreement with its lender in connection with the Company's US$13.0 million restructured loan facility.

The funds were advanced to the Company on February 13, 2009 (see February 17, 2009 media release "Gold Hawk receives US$2.0 million from restructured loan") and are being used to support ongoing activities at the Coricancha Mine and for general corporate purposes. The loan repayment date will be February 13, 2010, which follows the Company's planned restart of production later this year once re-start financing is in place. The Company announced the original signing of the indicative term sheet for the restructured loan on February 2, 2009.

"With the debt repayment extended to 2010, strong funding support from our lender and effective cost management in place, Gold Hawk is positioned to return the Coricancha Mine to production," said Mr. Kevin Drover, Gold Hawk's President and CEO. "With continued strong gold and silver prices and a proven revenue stream from zinc and lead as by-products bolstering the bottom line, Gold Hawk is well positioned to provide excellent value to our shareholders."

The loan bears interest at 12.0% per annum. All fees and interest associated with the new loan agreement are capitalized and become part of the new loan facility.

The Company has issued the lender 20,000,000 bonus warrants to purchase common shares at an exercise price of $0.05 for the first year and $0.10 for the second year of the two-year warrants. Associated with the restructured loan, the Company has granted the lender a 2.5% Net Smelter Return Royalty for future Coricancha Mine production. The Company has the option to reduce the royalty rate to 1.5% in consideration for a US$1.0 million payment.

Gold Hawk has also issued the lender 2,985,067 bonus shares in consideration of a loan extension granted in October 2008 and in lieu of 1,500,000 warrants and 3,000,000 shares that were to be issued under the original terms of the extension.

The new loan agreement and all associated fees and bonus securities will be subject to certain conditions, including receipt of final approval of the TSX Venture Exchange.

About Gold Hawk Resources Inc.

Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious metals company with reserves and resources containing gold, silver, lead, zinc and copper and a near-term production project at the Coricancha Mine and 600 tonnes of ore per day processing facility, located 90kms east of Lima, Peru.

On January 7, 2009 the Company received its final permit to construct a new permanent tailings facility at Chinchan and has all of the other permits required for the re-start of the mine.

Gold Hawk is based in Vancouver, Canada and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compania Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec).

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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 or accuracy of this release.

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