Redhawk Resources, Inc.

Redhawk Resources, Inc.

August 05, 2005 13:08 ET

Redhawk Acquires Arizona Copper Assets and Announces a Part and Parcel Private Placement to Raise $2.5 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 5, 2005) - Redhawk Resources, Inc. (Redhawk) (TSX VENTURE:RDK) announces the acquisition of a copper project in Arizona known as the Copper Creek Property. The seven-square-mile Copper Creek Property includes both patented mineral and surface titles, unpatented mineral claims and State Leases. The Property is located in the southwest copper porphyry belt in Arizona, 75 road miles northeast of Tucson and 15 miles northeast of San Manuel, in an area well situated in regards to existing domestic and copper mining infrastructure.

Redhawk paid $300,000 on signing and will pay a further $1,300,000 on closing to complete the property acquisition. In addition Redhawk will pay $125,000 Advance Royalty Payment's (ARP's) yearly commencing on closing. Redhawk will also pay a 2.25% Royalty Payment (RP) from any Commercial Production from the Property until Redhawk has paid the owner a total of $25,000,000 in combined ARP's and RP's.

Redhawk also announces a $2,550,000 part-and-parcel private placement of 17,000,000 units of Redhawk at a price of $0.15 per unit. Each unit is composed of one common share and one share purchase warrant, each warrant entitling the holder to purchase an additional common share of the Company at a price of $0.30 per share for a period of two years.

The proceeds of the private placement will be used to complete the Property acquisition, and to commence exploration and other project related activities. Finder's fees will be payable on all or a portion of the private placement in accordance with the policies of the TSX Venture Exchange.

The acquisition and private placement are subject to regulatory approval.

The two principal deposit types at Copper Creek are copper and molybdenum bearing breccia deposits, and copper and molybdenum bearing porphyry deposits.

Project information will be forthcoming shortly, following receipt by the Company of its geological consultant's final form 43-101 Summary Report on the Copper Creek Arizona Property.

R. Joe Sandberg, CPG, and Richard D. Somerville, P. Eng., both qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release.

The TSX Venture Exchange has neither approved nor disapproved this release.

Contact Information