SOURCE: Hunt Gold Corporation

July 07, 2008 09:50 ET

Hunt Gold Corporation -- Potential Change of Control

Company Confirms That Company May Be Subject to a Change of Control

NEW YORK, NY--(Marketwire - July 7, 2008) - Hunt Gold Corporation (PINKSHEETS: HGLC) confirms that its Board of Directors has been informed that certain "activist" Investment Groups have obtained options to acquire significant amounts of the Company's shares of outstanding Common Stock. To date, the Board estimates this to represent approximately 20% of the Company's outstanding Common Stock.

The Board has been advised by several substantial stockholders of the Company that they too require drastic action and fast. They have made it abundantly clear they will not tolerate the Company's stock price trading at such a huge discount given the commodities boom at this time.

Should these Investment Groups continue to acquire additional options to acquire outstanding shares of the Company's Common Stock as well as obtaining the support of other significant stockholders in the Company; the Board of Directors is of the opinion that these Investment Groups and their allies may very well control far in excess of 51% of the Company's outstanding stock and in an extremely short period of time.

The Company's Management and its Advisors are in discussions with these Investment Groups, significant Company stockholders as well as with other unrelated parties in an attempt to find an equitable solution, if at all possible. This will include the expediting of the Company's Mining Valuations for each and every Gold property in the Company's portfolio; in an effort to ascertain a fair value for the Company and/or for the various Gold assets held by the Company at this time.

These parties, being the Investment Groups and other significant stockholders in the Company, are absolutely definite that that they consider the Company's stock to be vastly undervalued, the Company's "free float" of shares being far too large and the Share Capital structure to be unacceptable to Institutional Investors. The reality is that the Company's current market capitalization is now even lower than the value of its "Mockingbird" Gold Project, therefore discounting all of the Company's other Gold Mining & Exploration assets.

To that end; they have indicated that they intend to effect substantial changes to eliminate this discount between the Company's Net Asset Value and its stock price as well as the Company's Mining and Exploration strategy. Their actions coupled with the extremely bullish global outlook for Gold, its supply and pricing; could very well lead to a complete buyout of the Company by these Investment Groups, should they succeed in their acquisition of sufficient stock in the Company in order to effect these changes. It is not unlikely that another bidder with similar intentions; may emerge in the interim.

Stockholders will be advised accordingly as your Company's Management becomes aware of further details and developments.

ABOUT HUNT GOLD CORPORATION

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "American Molygold," "Gladstone Lookout," "Lady Alde," "Lookout Silver," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal" interests.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • For further information contact:
    Mr. Michael G Saner
    Hunt Gold Corporation
    E Mail: Email Contact
    Telephone: (954) 840-6956