Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

November 17, 2006 13:42 ET

Gold Hawk Resources Inc.-Debt Facility for the Coricancha Mine, Formerly the Tamboraque Mine, Increased by $US 5,000,000, Plans Start-Up of the Coricancha Mine in February 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2006) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that as a result of its wholly-owned subsidiary, Compañia Minera San Juan (PERU) S.A. ("CMSJ"), receiving a resolution from the Peruvian Ministry of Energy and Mines lifting the "Stop Work Order" on the Coricancha concentrator (Press Release dated November 6 2006), the conditions to enable the Company to draw down the remaining US $3 million of the US $5 million Tranche A loan facility provided by Natexis Banques Popularies and Auramet Trading, LLC (Press Release dated September 20, 2006) have been satisfied.

In addition, the terms of the US$5 million Tranche B loan facility, which was to be used solely to support the potential acquisition activities of the Company, have been amended such that this facility will also be available for the purpose of funding the capital requirements for the Coricancha Mine through June 30, 2007. As compensation for amending the terms of the Tranche B facility, Gold Hawk will, subject to regulatory approval, issue 500,000 warrants to the lenders. Each warrant will entitle the holder thereof to purchase one common share of Gold Hawk at an exercise price of $ 0.445 until September 7, 2008. The warrants and the common shares issuable upon the exercise of the warrants will be subject a "hold period" pursuant to applicable Canadian securities laws which will expire four months and one day after the date of issue of the warrants.

Management continues to expect that the mill will start-up in February 2007 and be in full production at 600 tpd in April 2007. At the present time, there are approximately 160 workers on site and when in full production the mine will employ approximately 600 people.

Gold Hawk is a Canadian natural resource company, based in Vancouver, B.C., engaged in the exploration, development and operating of precious and base metal mines. In addition to 100% ownership of the recently acquired Coricancha Mine in Peru, the Company has exploration properties in Peru and Quebec, Canada.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement

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

Contact Information

  • Gold Hawk Resources Inc.
    Mr. Gordon F. Bub
    Chairman and C.E.O.
    604-689-9261
    or
    Gold Hawk Resources Inc.
    Mr. Kevin Drover
    President and Chief Operating Officer
    604-689-9296
    www.goldhawkresources.com