DENVER, COLORADO--(Marketwire - May 1, 2008) - West Hawk Development Corp. ("West Hawk") (TSX VENTURE:
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News; FRANKFURT:
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News; the "Company") is pleased to announce that it has received the approval of the TSX Venture Exchange to proceed with the Company's previously announced transaction on April 10, 2008, with Fuselier Holdings, LLC ("Fuselier") of Richardson, Texas for the assignment and transfer to Fuselier of approximately US$10.6 million in outstanding trade debt, including all trade debt outstanding on its Figure Four Property in the Piceance Basin. The transfer of the debt has allowed Fuselier to begin settling all existing lien claims and actions filed by West Hawk's creditors.
West Hawk is also pleased to report that in a successful first round of meetings between Fuselier and the Company's creditors, settlement has been reached with several key creditors totaling US$3.8 million.
Dr. Jean R. Fuselier, Sr., President and CEO of Fuselier Holding, LLC, said that Fuselier, "Has been moving swiftly since signing the definitive agreement and the creditors have been very receptive to our offers. We have met with many major creditors personally and we applaud their flexibility and patience. We will continue this series of meetings until our proposals have been extended to and understood by all creditors. An important benefit we are bringing to West Hawk is its subsequent ability to move forward with its business strategies without the encumbrance of this significant debt."
"We are very encouraged and pleased by the results that Dr. Fuselier and his team have achieved thus far. We are confident that the positive response from creditors will continue as further discussions are concluded," commented West Hawk's CFO, Roger A. Baer.
On behalf of the Board of Directors,
Dr. Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Tulita coal property in the Northwest Territories, the Nunavut Coal property and the Groundhog Coal property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.
