| ||October 24, 2008|
Hawthorne Gold Announces Brokered Private Placement To Raise Up To $2 Million
| ||For Immediate Release October 24, 2008|
HAWTHORNE GOLD ANNOUNCES BROKERED PRIVATE
PLACEMENT TO RAISE UP TO $2 MILLION
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX-V: HGC) announces it has arranged a brokered private placement (the "Offering") of its securities comprised of up to $2,000,000 of flow through common shares (the "FT Shares") priced at $0.20 per FT Share. J.F. Mackie & Company Ltd. (the "Agent") is acting as lead agent for the Offering and will offer the FT Shares on a commercially reasonable efforts basis. The FT Shares will be made available by way of private placement exemptions in the provinces of British Columbia, Alberta and Ontario.
Closing of the Offering is subject to a number of conditions, including the receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange, as well as the negotiation and execution of certain documentation, including an agency agreement between the Agent and Hawthorne.
At closing, Hawthorne will pay the Agent a cash commission equal to 7.0% of the gross proceeds of the FT Shares sold, and will issue to the Agent broker warrants (the "Broker Warrants") to acquire that number of common shares of the Company (the "Shares") equal to 7.0% of the number of FT Shares sold under the Offering. Each Broker Warrant will be exercisable at $0.30 per Share for a period of 12 months after closing. The Company will also reimburse the Agent for reasonable fees and expenses incurred in connection with the Offering.
Proceeds from the Offering will be used to fund the Company's 2009 field work on its projects in British Columbia. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of completion of the Offering 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 2009 and continued resource development at the nearby Taurus deposit, as well as the Frasergold deposit in the Cariboo region of south central British Columbia.
For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or the Company at (604) 629-1505 or toll free at 1-888-629-1505, or you can visit Hawthorne's website at www.hawthornegold.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 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. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Thu Oct 30, 2008, Hawthorne Gold Announces Increase in Brokered Private Placement to $2.4 Million
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