Hawthorne Gold Corp.
TSX VENTURE : HGC
PINK SHEETS : HWTHF

Hawthorne Gold Corp.

November 12, 2010 17:18 ET

Hawthorne Closes First Tranche of Private Placement for Gross Proceeds of $2,618,400

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2010) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC)(PINK SHEETS:HWTHF) is pleased to announce that further to its news release dated October 14, 2010, the Company has closed the first tranche of the non-brokered private placement (the "Private Placement") and issued 23,803,636 common shares in the capital of the Company ("Shares") at the price of $0.11 per Share for gross proceeds of $2,618,400.

The Shares issued under the first tranche of the Private Placement are subject to a statutory hold period expiring on March 13, 2011. Final acceptance of the Private Placement is subject to filing of final documentation with the TSX Venture Exchange ("TSXV").

The funds raised from the issuance of the Shares will be used for exploration and development at the Company's Cassiar Gold Camp, as well as for general corporate and working capital purposes.

As detailed in the Company's news release of October 14, 2010 and pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Company is required to obtain "minority approval" (as defined in MI 61-101) to close the second tranche of the Private Placement which consists only the subscription of 68,181,818 Shares from Skyocean Ventures Investment Limited ("Skyocean"). The Company has scheduled a special general meeting of its shareholders to be held on December 8, 2010 (the "Special Meeting") to approve the creation of a new "control person" as defined in the TSXV Corporate Finance Manual. For further information on the Special Meeting, see the Company's Information Circular dated November 9, 2010, a copy of which is available under the Company's Sedar profile at www.Sedar.com.

About Hawthorne Gold Corp.

Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne is led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne's goal is to become a junior gold producer by working towards production at Table Mountain and the continued resource development at the nearby Taurus deposit.

ON BEHALF OF HAWTHORNE GOLD CORP.

Michael J. Beley, Chairman

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Hawthorne's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither 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 of accuracy of this release.

Contact Information

  • Hawthorne Gold Corp.
    Robert Ferguson
    (604) 629-1505 or Toll Free: 1-888-629-1505
    (604) 629-0923 (FAX)
    www.hawthornegold.com