Redhawk Resources, Inc.
FRANKFURT : QF7
TSX : RDK

Redhawk Resources, Inc.

August 04, 2015 18:11 ET

Redhawk Announces Convertible Debenture Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 4, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX:RDK)(FRANKFURT:QF7) is pleased to announce that it is proceeding with a non-brokered private placement (the "Private Placement") of up to 190 convertible debentures ("Debentures") at a price of US$1,000 per Debenture to raise gross proceeds of up to US$190,000.

The Debentures bear interest at the rate of 10% per annum and mature one year from the closing date (the "Closing Date"). Commencing one day following the Closing Date until the close of business on the maturity date, the principal amount of the Debentures is convertible, at the option of the holder, into units ("Units") of the Company at a price of C$0.05 per Unit. Each Unit will be comprised of one common share (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to subscribe for an additional Share at the price of C$0.07 per Share for two years from the Closing Date.

All securities issued pursuant to the Private Placement will be subject to a statutory hold period of four months and one day from the Closing Date. Completion of the Private Placement is subject to the approval of the Toronto Stock Exchange.

About Redhawk

Redhawk is a Canadian-based resource exploration and development company with a current focus on the advancement of the Copper Creek copper-molybdenum project in San Manuel, Arizona through a joint venture with Anglo American. The Copper Creek property consists of approximately twenty-nine square miles of contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants. Redhawk is concurrently implementing a strategy for growth through the opportunistic acquisition of interests in mining projects during this period of decreased valuations in the mining sector.

ON BEHALF OF THE BOARD

J. Stephen Barley, Executive Chairman

Cautionary Note Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These forward looking statements relate to future events or the Company's future performance, business prospects or opportunities including, without limitation, statements relating to the completion of the Private Placement. The Company believes that the expectations reflected in such forward looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. These statements speak only as of the date of this press release. Forward looking information involves risks and uncertainties which may cause actual results to be materially different from those expressed or implied by such forward looking information. Such risk and uncertainties relate to, among other things: completion of all conditions to the Private Placement and the ability to complete the Private Placement. The Company does not intend, and does not assume any obligation, to update any forward-looking information except as required by law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws of any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.

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