Hawthorne Gold Corp.
TSX VENTURE : HGC

Hawthorne Gold Corp.

April 17, 2008 18:15 ET

Hawthorne Gold Closes First Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2008) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) (WKN:A0M55U) announces it has closed on $11,740,490 of the brokered private placement previously announced on April 2, 2008. The brokered private placement (the "Offering") is led by Blackmont Capital Inc. and includes J.F. Mackie & Company Ltd. and M Partners Inc. (collectively the "Agents"). The closing consisted of 3,443,009 units (the "Units") priced at $1.75 per Unit for gross proceeds of $6,025,266 and 2,930,884 flow-through common shares (the "Flow-Through Common Shares") priced at $1.95 per share for gross proceeds of $5,715,224. Each Unit consists of one common share and one-half warrant, with each whole warrant exercisable for a period of 24 months from the closing date of the Offering, to acquire one common share at $2.25 per common share.

The Agents received a cash commission of $704,429 or 6% of the gross proceeds raised, and 382,434 compensation options equal to 6% of the aggregate number of Units and Flow-Through Common Shares sold pursuant to the Offering. Each compensation option entitles the holder thereof to purchase one common share at an exercise price of $1.75 per common share for a period of 12 months from the closing of the Offering.

Proceeds from the Offering will be used to fund the Company's 2008 field work, including exploratory and definition drilling on the Frasergold project, the Table Mountain project and the Taurus project, all located in British Columbia, Canada.

A second closing is expected on or about April 24, 2008 and details will be provided by a subsequent news release.

The common shares and warrants to be issued in connection with this Offering will be subject to a four month hold period from the closing date of the Offering in accordance with the policies of the TSX Venture Exchange (the "Exchange") and applicable securities laws.

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 together with mining veteran Michael Redfearn. Hawthorne's goal is to become a junior gold producer through planned production at Table Mountain in 2009 and continued resource development at the optioned Frasergold and Taurus deposits.

ON BEHALF OF HAWTHORNE GOLD CORP.

Richard J. Barclay, President & CEO

Certain information regarding the company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Contact Information

  • Hawthorne Gold Corp.
    Robert Ferguson
    (604) 629-1505 or Toll Free: 1-888-629-1505
    or
    Hawthorne Gold Corp.
    Todd Hanas
    Toll Free: 1-866-869-8072
    Website: www.hawthornegold.com