Media Centre
| |   Wed Dec 19, 2007
Property Acquisitions and Up to $1 million Private Placement
|
| | Glen Hawk Minerals Ltd. ("GHM") is pleased to announce a new strategic plan for 2008. This plan involves the optioning of three new precious metals projects in British Columbia, Ontario and Quebec and a financing for $1,000,000.
Financing:
The brokered portion of the financing will be up to $650,000 and will be conducted on a best efforts basis by Union Securities Inc.(the "Agent") and will consist of up to 1,085 units (the "Brokered Units") at a price of $600 per Brokered Unit, with each Brokered Unit being comprised of: 5,000 flow-through common shares at $0.10 per flow-through common share; 1,000 non flow-through common shares at $0.10 per common share; and 6,000 warrants each exercisable to acquire a common share at $0.15 for a period of 12 months from closing. The Agent will receive a cash commission of 10% plus warrants ("Agent's Warrants") equal in number to 10% of the number of flow-through common shares and common shares sold through sale of the Units, such Agent's Warrants being exercisable at $.10 for two years from closing.
The non-brokered portion of the financing will raise up to an additional $350,000 by the sale of up to 3.5 million units (the "Non-Brokered Units") at a price of $0.10 per Non-Brokered Unit, each Non-Brokered Unit consisting of one flow-through common share (or in certain instances one non flow-through common share) and one warrant to purchase a further common share at $0.15 for a period of 12 months from closing.
The gross proceeds of $1,000,000 will be used for the acquisition costs of the properties detailed below, exploration expenditures and general working capital.
New Projects:
Outland Silver Bar Project, British Columbia
GHM has entered into a binding letter of intent with Bell Resources Corporation ("Bell") for an option to earn a 60% interest in Bell's interest in the Outland Silver Bar Property
consisting of 17 mineral claims situated in North West British Columbia (the "Outland Property").
Pursuant to an option agreement with the underlying owners of the Outland Property (the "Underlying Option Agreement") Bell has the right to earn a 100% interest in the Outland Property subject to a 2% NSR, 50% of which Bell can purchase for $1 million or such lesser percent as it wishes to on a pro rata basis. In accordance with the letter of intent with the Company Bell has agreed to provide the Company with the option to acquire a 60% interest in Bell's rights as provided for in the Underlying Option Agreement on the following basis:
1.the Company will issue 600,000 common shares to Bell (200,000 upon regulatory approval and 200,000 on the 1st anniversary date, and 200,000 on 2nd anniversary date).
2.the Company will assume the terms of the Underlying Option Agreement that includes cash payments of $27,500 to each of the two underlying property owners by October 12, 2008.
3.the Company will be required to complete work programs of $133,000 in cumulative expenditures by October 20, 2008; and $150,000 in cumulative expenditures by October 20, 2009.
GHM will keep the Outland Property in good standing at all times while the Secondary Option is in effect and will provide MMC with proof of compliance 30 days prior to all applicable assessments and/or government filings having to be made.
The Outland Property is situated approximately 24 kilometers north of Stewart, British Columbia, on Outland Point, on the west side of the Salmon Glacier. The block consists of 17 contiguous tenures, totaling 3,516 hectares. There Outland Property is across the Salmon Glacier from Ascot Resources Ltd. (TSXV: AOT -- Dilworth Project).
The Outland Property has not been adequately explored to determine the possibility of economic concentrations of mineralization.
Satterly Lake Project, Ontario
GHM has entered into a binding letter of intent with Malahat Mining Corp. ("MMC") for an option to earn a 60% interest in MMC's interest in the Satterly Lake Property; consisting of 5 mineral claims (79 units / 1264 hectares) situated in the Red Mining Division of Ontario (the "Satterly Property").
Under an option agreement dated December 7, 2005 the owner (the "Underlying Owner") of the Satterly Property optioned a 100% interest in and to the Satterly Property to Malahat Mining Corp. ("MMC") (the "Underlying Option Agreement"), subject to a 2% NSR, 50% of which MMC can purchase for $500,000. In accordance with the letter of intent with the Company MMC has agreed to provide the Company with the option to acquire a 60% interest in MMC's rights as provided for in the Underlying Option Agreement on the following basis:
1.the Company will issue 40,000 common shares to the Underlying Owner and 600,000 common shares to MMC (200,000 upon regulatory approval and 200,000 on the 1st anniversary date, and 200,000 on 2nd anniversary date).
2.the Company will assume the terms of the Underlying Option Agreement that includes cash payments of $16,000 by January 7, 2008; $20,000 by December 7, 2008 and $40,000 by December 7, 2009.
3.the Company will be required to complete work programs of $133,000 in cumulative expenditures by October 20, 2008; and $150,000 in cumulative expenditures by October 20, 2009.
GHM will keep the Satterly Property in good standing at all times while the Secondary Option is in effect and will provide MMC with proof of compliance 30 days prior to all applicable assessments and/or government filings having to be made.
The Satterly Property has not been adequately explored to determine the possibility of economic concentrations of mineralization.
Windfall Lake Project, Quebec
GHM The Company has entered into a binding letter of intent with Berthe Lambert and Richard M. Lacasse (the "Optionors") for an option (the "Windfall Option") to earn a 100% interest in the Windfall Lake Property in Quebec, subject to a 2% NSR, 50% of which the Company can purchase for $1 million or such lesser percent as it wishes to on a pro rata basis.
The Windfall Lake Property is located in the Chibougamau Mining District in Urban Township, Quebec, Canada, in close proximity to the Noront Resources Ltd. (TSXV: NOT) Windfall Lake project. The property consists of 38 mineral claims (approximately 147 hectares).
The Company can exercise the Windfall Option on the following basis:
1.the Company will issue 1,125,000 common shares to the Optionors upon regulatory approval and 500,000 common shares on the first anniversary of the letter of intent.
2.the Company will make cash payments to the Optionors in the total amount of $175,000 with $20,000 to be paid upon regulatory approval of the agreement, $80,000 on December 31, 2007; and $75,000 on December 31, 2008.
3.the Company will be required to complete work expenditures of $500,000 by December 12, 2008.
The Windfall Lake Property has not been adequately explored to determine the possibility of economic concentrations of mineralization.
On behalf of the Board of Directors
"Laara Shaffer"
Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. |
| |
| You can view the Next News Releases item: Wed Jun 11, 2008, Glen Hawk Minerals - Updates Property Acquisitions
You can view the Previous News Releases item: Tue Dec 19, 2006, Glen Hawk acquires Spray Creek Molybdenum-Gold Prospect.
You can return to the main News Releases page, or press the Back button on your browser.
|
|
