Redhawk Resources, Inc.

Redhawk Resources, Inc.

December 21, 2010 09:11 ET

Redhawk Resources Announces Closing of $20.0 Million Underwritten Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) -


Redhawk Resources, Inc. (TSX VENTURE:RDK)(FRANKFURT:QF7) ("Redhawk") is pleased to announce that it has closed its previously announced underwritten private placement (the "Offering") of 26,667,000 units of Redhawk (the "Units") with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including GMP Securities L.P., Byron Securities Ltd. and Primary Capital Inc. (collectively the "Underwriters") at a price of $0.75 per Unit for gross proceeds of $20,000,250. Each Unit is comprised of one common share of Redhawk (a "Common Share") and one-half of one transferable Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at an exercise price of $1.00 per Common Share until December 21, 2012.

The Underwriters have an option to purchase up to an additional 4,000,050 Units at $0.75 per Unit for additional aggregate gross proceeds to Redhawk of $3,000,037.50, exercisable at any time, in whole or in part, on or prior to the date that is 30 days from today, or such earlier date as determined by the TSX Venture Exchange (the "Exchange").

In consideration for their services, the Company has paid the Underwriters a cash commission representing 6.5% of the gross proceeds of the Offering and issued non-transferable compensation options (the "Compensation Options") representing 6.5% of the number of Units sold in the Offering. Each Compensation Option will entitle the holder to purchase one Common Share and one-half of one non-transferable Common Share purchase warrant (an "Underlying Warrant") at an exercise price of $0.75 per Compensation Option until December 21, 2012. Each Underlying Warrant will entitle the holder to purchase one Common Share at an exercise price of $1.00 per Common Share until December 21, 2012. Lockwood Financial Ltd. has acted as a financial advisor to Redhawk with respect to the Offering and has also received a cash finder's fee representing 1.5% of the gross proceeds of the Offering.

The Exchange has conditionally approved the Offering, and its final approval is subject to, among other things, Redhawk filing final documentation in connection with the Offering pursuant to the policies of the Exchange. All securities issued pursuant to the Offering are subject to a hold period expiring on April 22, 2011.

The net proceeds from the Offering will be used to fund the continued development of the Copper Creek Property and for general working capital purposes.

About Redhawk

Redhawk is a Canadian-based resource exploration and development company with primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. The 100% owned Copper Creek property consists of approximately seven square miles of almost totally contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona and about 15 miles east of San Manuel. The property is in the prolific southwest US porphyry copper belt at the projected intersection of a major northwest belt of porphyry copper deposits or mines (Ray, Miami/Globe, Superior/Resolution, Johnson Camp) and a major east-northeast belt of porphyry deposits (San Manuel/Kalamazoo, Silver Bell, Lakeshore, Safford, Morenci). The property is within sight of the former BHP Kalamazoo/San Manuel copper smelter and mine and within 30 miles of an existing operating copper smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure.


J. Stephen Barley, Managing Director

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law Redhawk does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Redhawk to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent an applicable exemption from U.S. registration requirements.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.

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