Hawk Precious Minerals Inc.

Hawk Precious Minerals Inc.

July 12, 2005 06:00 ET

Hawk Announces Financing and Natural Gas Play in Lambton County, Ontario

TORONTO, ONTARIO--(CCNMatthews - July 12, 2005) - Hawk Precious Minerals Inc. (CNQ:HAWK) (the "Company") is pleased to announce that it will be seeking to raise up to $2,000,000 through a brokered private placement offering (the "Offering") of the following securities (the "Securities"):

(i) up to a maximum of five million (5,000,000) Common Share Units of the Company at a price of twenty cents ($0.20) per Common Share Unit; each Common Share Unit will consist of one (1) common share of the Company ("Common Share") and one half of one (1/2) purchase Warrant; and

(ii) up to a maximum of four million (4,000,000) Series 1 Flow-Through Units of the Company at a price of twenty-five cents ($0.25) per Flow-Through Unit; each Flow-Through Unit will consist of one (1) flow-through share of the Company and one half of one (1/2) Warrant.

Each whole Warrant shall be exercisable for one (1) Common Share of the Company at a price of thirty-five cents ($0.35) per share for a period eighteen (18) months from its date of issue.

The Company will use an amount equal to the aggregate of the gross proceeds from the sale of the Flow-Through Units to incur Canadian Exploration Expenses (as defined in the Income Tax Act (Canada)) on its mineral exploration properties in Ontario, which will be renounced to subscribers of the Flow-Through Units.

The first closing of the Offering is expected to take place next week. The Company may hold multiple subsequent closings until the full Offering is sold. The Company intends to use the net proceeds of the Offering to fund the exploration of its properties and to make option payments on those properties where necessary (as described in Hawk's CNQ Quotation Statement), as well as for working capital.

Dominick & Dominick Securities Inc., Suite 1700, 150 Adelaide Street West, Toronto, Ontario M5H 3L5 (the "Agent") is acting as the Company's lead agent for the Offering on a reasonable efforts basis. For its services, the Agent will receive broker warrants equal to 10% of the Common Shares and Flow-Through Shares underlying the Securities sold in the Offering.

Stanley Line P & NG Farm-Out Project

The Company is also pleased to announce that it has agreed to farm into a 75% working interest in a three well project from TASC Resources on a 1700 acre parcel of Petroleum and Natural Gas Lease including storage leases in Lambton county of southwestern Ontario. Terms of the agreement include the issuance of 250,000 Common Shares from treasury, $50,000 cash, completion of 2D Seismic and the drilling of three test-wells over the prospect. The prospect is offset by gas production on both the east and the west. One line of seismic has been completed and preliminary review indicates at least two potential structural targets. Additional seismic will be completed in the next few weeks to be followed by drilling upon permits being issued.

About the Company

The company has both direct or option interests in two mineral exploration properties in Ontario plus a core holding of 3.45 million shares in Wits Basin Precious Minerals Inc. (OTCBB:WITM), which company is currently funding a gold exploration program in South Africa operated by AfriOre Limited and 4,000,000 units of MacDonald Mines Exploration Limited (TSXV:BMK) which company is carrying out an active exploration program in the McFaulds Lake area of the James Bay Lowlands the site of a new potential VMS base metal play.

Contact Information

  • Hawk Precious Minerals Inc.
    H. Vance White
    416-214-2250 or 866-214-9486
    416-367-1954 (FAX)
    Hawk Precious Minerals Inc.
    Walter Brooks
    416-214-2250 or 866-214-9486
    416-367-1954 (FAX)