VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 25, 2007) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) announces it has successfully completed its initial public offering (the "IPO") of 3,350,000 common shares at a price of $0.60 per common share (the "Offering"). The common shares were issued pursuant to the final prospectus of the Company dated March 28, 2007, for total gross proceeds to the Company of $2,010,000. The common shares were listed on the TSX-V under the symbol "HGC" effective at the market open. Following the IPO, there are 11,114,500 common shares of the Company issued and outstanding.
The Offering was made through Haywood Securities Inc. and Wolverton Securities Ltd. as agents (collectively the "Agents"). The Company has paid the Agents a commission equal to 7% of the gross proceeds of the Offering payable by issuing 234,500 common shares at a conversion price of $0.60 per share and options to purchase 335,000 common shares of the Company, exercisable at $0.60 per share until April 23, 2009.
The Company also granted stock options to officers, directors and consultants of the Company to purchase 1,050,000 common shares at a price of $0.60 per common share, exercisable until April 25, 2012.
The Company intends to use the proceeds of the Offering primarily for the exploration and advancement of its Frasergold Property in central British Columbia and continue exploration at its Carruthers Pass Property in northern British Columbia.
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 Gold is led by respected mining leaders Richard Barclay and Michael Beley, who co-founded both Bema Gold Corporation in the early 1980's and later Eldorado Gold Corporation in the 1990's.
Together with mining veteran Michael Redfearn, and a strong board of Directors from across the mining industry, the goal is to become another successful gold company through focused exploration initiatives, continued development of the Frasergold mineral deposit and potential acquisitions of other projects.
Frasergold, British Columbia
The Frasergold Property is located in the historic Quesnel Trough area in central British Columbia and has a long history of continuous exploration since the 1970's. Hawthorne's objectives are to commence the process of converting historic resources to a National Instrument ("NI") 43-101 compliant resource estimate, as well as conducting exploration outside of the known historic resource area. The work programs will include confirmatory and exploratory diamond drilling, underground bulk sampling, surface and underground geological mapping, airborne geophysics and preliminary metallurgical testing for flowsheet design. The full extent of the mineralized zones remain to be tested along strike and at depth.
Historically, the mining, geological and geotechnical engineering firm James Askew Associates, Inc. ("Askew") of Englewood, Colorado conducted a pre-feasibility study of the Frasergold project in January, 1991. Based on certain parameters set out in this study, Askew (1991) summarized the gold mineralization at the Frasergold Property as 6,612,675 tons of mineralized material at an average grade of 0.055 oz Au/t to represent 362,825 ounces of gold.
The above mentioned resource calculation by Askew for the Frasergold Property was conducted by mining engineers, however the calculations were not conducted according to CIM standards and are not compliant with NI 43-101. These calculations are not to be relied upon for evaluating the Frasergold Property and are presented here for historic purposes only. Hawthorne has not completed a resource estimate of the Frasergold Property. References made to the Company's NI 43-101 compliant report are available at www.sedar.com.
Carruthers Pass, British Columbia
The Carruthers Pass Property located in the Omineca Mining Division of north-central British Columbia, lies approximately 70 kilometers south of the Kemess gold-copper mine. Hawthorne completed an exploration program in the summer of 2006 and results to date have indicated that massive sulphide mineralization occurs on the property within a favourable pyritic shale/siltstone stratigraphic unit. A second phase exploration program of mapping and sampling is planned to further delineate the massive sulphides and associated stratigraphy.
Geoffrey Goodall, P.Geo, is the independent Qualified Person, as defined by NI 43-101, responsible for the technical information contained in this release. The final prospectus and NI 43-101 technical reports on the Company's Frasergold and Carruthers Pass Properties are available at www.sedar.com.
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 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.
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923 (FAX)