| ||December 01, 2009|
Hawthorne Gold Announces Closing of Non-Brokered Flow Through Private Placement for Gross Proceeds of $1,755,295
| ||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, US: HWTHF) is pleased to announce that it has closed the non-brokered private placement of flow-through shares (the "Flow Through Shares") announced on November 20 and November 26 for gross proceeds of $1,755,295 (the "Offering"). On closing, the Company issued a total of 4,281,208 Flow-Through Shares at a price of $0.41 per Flow-Through Share (the "Offering"). Each Flow-Through Share consists of one common share in the capital of the Company which will qualify as a "flow-through share" for tax purposes under the Income Tax Act (Canada).
The Flow-Through Shares were made available to subscribers resident in Canada by way of private placement exemptions under National Instrument 45-106 Prospectus and Registration Exemptions.
The Company paid a total of $121,077 in cash and issued 295,310 Finder's Warrants (as such term is defined below), equivalent to 7% of the gross proceeds and 7% of the Flow-Through Shares respectively, sourced by eligible finders in respect of certain Flow-Through Shares placed under the Offering. Each Finder's Warrant (a "Finder's Warrant") is exercisable at $0.51 per common share for a period of 12 months after closing of the Offering.
All securities issued in connection with the 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.
Proceeds from the Offering will be used to fund exploration and resource development expenses at the Company's Table Mountain Mine and Taurus deposit.
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 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.
For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or via email to email@example.com, or the Company at (604) 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy or this release.
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