VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2009) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC)(OTCBB:HWTHF) has closed its private placement for gross proceeds of $6,231,500. The private placement consisted of a non-brokered private placement of 12,974,166 units (the "Units") at a price of $0.30 per Unit for total gross proceeds of $3,892,250 (the "Non-Brokered Offering") and a brokered private placement of 7,797,500 Units at a price of $0.30 per Unit for total gross proceeds of $2,339,250 (the "Brokered Offering"). J.F. Mackie & Company Ltd. (the "Agent") acted as the agent for the Brokered Offering. Each Unit consists of one Common Share (a "Common Share") and one half of a transferable share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.40 per Common Share for a period of 12 months following the closing of the Non-Brokered Offering and Brokered Offering.
Hawthorne paid the Agent a cash commission equal to 7% of the gross proceeds of the Brokered Offering or $163,748, and issued to the Agent 545,825 broker warrants (the "Broker Warrants") to acquire that number of Common Shares of the Company which is equal to 7% of the number of Units sold under the Brokered Offering. The Company reimbursed the Agent for reasonable fees and expenses incurred in connection with the Brokered Offering. Hawthorne also paid a cash commission equal to 7% of certain gross proceeds of the Non-Brokered Offering or $246,435, and issued 821,450 warrants (the "Finder's Warrants) to acquire that number of Common Shares of the Company which is equal to 7% of the number of Units sold to subscribers introduced to the Company by respective finders under the Non-Brokered Offering. Each Finder's Warrant is exercisable at $0.40 per Share for a period of 12 months after closing.
Proceeds from the Brokered Offering and the Non-Brokered Offering will be used to fund resource development and commencement of pre-production expenses at the Table Mountain Mine and Taurus deposit and for general corporate working capital. All securities issued in connection with the Brokered Offering and Non-Brokered Offering are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne is led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne's goal is to become a junior gold producer by working towards production at Table Mountain in the latter part of 2009 and the continued resource development at the nearby Taurus deposit, as well as the Frasergold deposit in the Cariboo region of south central British Columbia.
ON BEHALF OF HAWTHORNE GOLD CORP.
Richard J. Barclay, President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Hawthorne Gold Corp.
Toll Free: 1-866-869-8072
Hawthorne Gold Corp.
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923 (FAX)