VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2007) - Hawthorne Gold Corp. ("Hawthorne")(TSX VENTURE:HGC) announces it has closed a non-brokered private placement for gross proceeds of $5,255,000 which was increased by $30,000 from the previously announced amount on July 6, 2007. The private placement consists of 3,284,375 common shares priced at $1.60 per unit. Each unit consists of one common share and one-half warrant. Each whole warrant is exercisable for a period of two years from closing to acquire one common share at a price of $1.75 per share. The warrants are subject to an accelerated expiry if the closing price of the common shares on the TSX-V is greater than or equal to $2.25 for any 10 consecutive trading days. In which case, the Company can elect to accelerate the expiry of the warrants to 30 days following the date of such notice.
The shares and warrants underlying the units are subject to a four month hold period in accordance with TSX-V policies and applicable securities laws. The Company paid a cash commission of 6% or $302,400 on funds sourced to eligible finders in respect of certain units placed under the financing. Insiders purchased 105,625 units of the private placement. Proceeds of the financing will be used for continued exploration of the Frasergold project and for general working capital.
As a result of closing of the private placement, Top-Gold AG MVK, a European based gold fund, owns approximately 17.4% of the outstanding common shares of the Company.
About the Frasergold Option Agreement
Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka Resources Inc. (TSX VENTURE:EUK), Hawthorne can earn a 51% interest in the Frasergold property by completing exploration expenditures totaling $3.5 million, completing a feasibility study by April 30, 2010 and making cash payments totaling $175,000 before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for 70% of the estimated capital costs for production.
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 managed by well-respected mining leaders Richard Barclay and Michael Beley. 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.
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)