TORONTO, ONTARIO, Apr. 29, 2010 (Marketwire) -- Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce that following the execution of a Letter of Intent with Hawk Uranium Inc. (TSX VENTURE:HUI) ("Hawk") announced in Orebodies press release dated April 13, 2010, Orebodies and Hawk have executed a purchase and assumption agreement whereby Hawk will acquire 100% legal and beneficial interest in Orebodies eight 100% owned properties (subject to a 10% NPI retained by Orebodies), and 100% interest in Orebodies seven 50% owned properties (subject to a 10% NPI retained by Orebodies on the portion of those properties to be acquired by Hawk, which would be converted to a 0.15% net smelter returns royalty if Hawk's interest in those properties is reduced to less than 10% and therefore converted to a net smelter returns royalty) held through a joint venture with Macdonald Mines Exploration Ltd. (TSX VENTURE:BMK) and Temex Resources Corp. (TSX VENTURE:TME). The Properties in total consist of 444 (100% owned) claim units comprising 7,104 hectares and 891 (50% owned) claim units comprising 14,256 hectares, all which are located in the James Bay Lowlands 'Ring of Fire', Ontario.
In order for Hawk to complete the purchase of 100% interest of all the properties, Hawk is required to:
1. Issue to Orebodies an aggregate amount of 5,000,000 common shares of
2. Issue to Orebodies 4,000,000 share purchase warrants of Hawk, each
warrant entitling Orebodies to acquire one common share of Hawk at an
exercise price of $0.15 per share for a period of four years from
3. Hawk will grant Orebodies the right to appoint one individual to the
board of directors of Hawk to represent Orebodies interest
(i)(The termination of the share purchase warrants issued to Orebodies could be accelerated in the third and fourth year of their term if the closing price of Hawk's common shares is at or above $0.30 per share in the third year, and $0.40 in the fourth year, for ten consecutive trading days.)
This transaction provides Orebodies an opportunity to participate in the upside potential of any exploration success on the properties which Orebodies is vending, and also on those of which Hawk already owns. Orebodies in turn has expanded its exposure in the James Bay Lowlands 'Ring of Fire' without the associated costs, allowing Orebodies to focus on its promising Lithium/Rare Metals properties and pursue additional opportunities available to the Company.
Gordon McKinnon, President & CEO of Orebodies stated "We are pleased to finalize this deal with Hawk and look forward to our continued business relationship that has resulted through this transaction. Hawk has an aggressive agenda to move forward in the Ring of Fire and through this transaction Orebodies will retain a significant equity position in Hawk which will provide continued exposure to the area."
Closing of the transaction remains subject to the approval of both the board of directors of Orebodies and Hawk, and the TSX Venture Exchange.
Forward Looking Information:
Some of the statements and information contained herein may be forward-looking information which involve known and unknown risks and uncertainties, including statements respecting the proposed sale of the claim units pursuant to the purchase. Without limitation, statements regarding the potential sale of the claims, statements regarding potential mineralization and resources, proposed exploration activities and future plans and objectives of Orebodies are forward looking statements that involve various degrees of risk. The following are important factors that could cause Orebodies actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, the uncertainty of access to capital. In particular, there can be no assurance that the definitive sale agreement will be entered into, that TSX Venture Exchange approval of the sale will be obtained, or that Orebodies will receive any or all of the payments or issuances necessary to complete the sale.