Oracle Ridge Copper Mine - Tucson, Arizona
2.17% copper - Production facility construction is expected to begin in the first half of 2012
Message: Agreement to Restructure Its Debt
| February 2, 2009 |
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Gold Hawk Reaches an Agreement to Restructure Its Debt
- Total debt restructuring package of US$13.0 million includes US$2.0 million of new funds |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2009) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that it has signed an indicative term sheet with one of its lenders to provide the Company with US$2.0 million of new funds, repay the existing bank debt and restructure all of the loans under one new US$13.0 million loan facility. The new funds will be used to support ongoing activities at the Coricancha mine and for general corporate purposes. All fees and interest associated with the new loan agreement are capitalized and become part of the new loan. The loan repayment date will be February 2010, whereas the Company's existing US$9.7 million total debt repayment date was January 29, 2009. The loan bears interest at 12.0% per annum. The Company will issue the lender 20,000,000 share purchase warrants and grant a 2.5% Net Smelter Return Royalty for the Coricancha Mine production. The Company has the option to reduce the royalty rate to 1.5% in consideration for a payment of US$1.0 million. The new loan agreement and all associated fees will be subject to certain conditions, including receipt of final approval of the TSX Venture Exchange. "With the construction permit for the new tailings facility at Chinchan in-hand (see January 7, 2009 Gold Hawk media release) and this new loan agreement, Gold Hawk is now in a much better position to re-finance the Company for the long term and bring the Coricancha Mine back into production in the third quarter of 2009," said Kevin Drover, Gold Hawk's President and CEO. |
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