Gold Hawk Builds Foundation for Year of Growth in 2011
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/13/10 -- Gold Hawk Resources Inc. ('Gold Hawk' or the 'Company') (TSX VENTURE: GHK) is well positioned for further growth in 2011 after significant success in expanding its asset base, cash position, investment returns and management team in 2010.
2010 Highlights:
-- Acquisition of the Oracle Ridge Copper Mine located 24 km northeast of
Tucson, Arizona
-- Increased cash position over the year:
-- $4.6 million proceeds from the sale of certain shares and warrants 'held
for trading' at two potential acquisitions, with annualized returns of
approximately 18% and 247% respectively (Oct-Nov 2010)
-- $7.0 million (net of finder's fee) from a private placement with
Coalcorp Mining Inc. (Nov 2010)
-- $1.1 million from the forced conversion of warrants triggered by the
high, sustained Gold Hawk share price (Oct-Nov 2010)
-- US$4.4 million gain from selling the remaining 15% interest in the
operating subsidiary of the Coricancha Mine in Peru cash - a 67%
improvement on value recovery compared to the initial 85% sale. (July
2010)
'This year has been one of transformation that saw Gold Hawk acquire a near-producing asset in the Oracle Ridge Copper Mine and increase our cash and securities on hand from $15 million at the start of 2010 to more than $25 million by the end of the year,' said Kevin Drover, Gold Hawk's Chairman and CEO. 'With the Board and management team we have in place, we are well-positioned to capitalize on these assets and further enhance shareholder value in 2011.'
The Company is focused on the Oracle Ridge Copper Mine in Arizona that was acquired in September. The pre-permitting stage is underway and underground confirmation drilling of the historic resource is planned to begin in early 2011. New drill results will be used to verify existing data and to complete a NI 43-101 compliant technical report on reserves and resources. In addition, Gold Hawk continues to review potential merger and acquisition opportunities with the goal of growing the company for its owners.
With the acquisition of the Oracle Ridge Copper Mine, and given Gold Hawk's current cash position, the Company is well-positioned to implement a strategy for growth that it believes will bring value for shareholders. Leading the development and implementation of this strategy will be the following Management group and Advisors:
Kevin Drover - Chairman and CEO
Kevin has been a member of the Gold Hawk leadership team since July 2006. He has more than 35 years experience at senior management levels in both domestic and international mining operations in such countries as Canada, Russia, Peru, Nicaragua, Costa Rica and the United States of America. Over the past 20 years he held positions ranging from General Manager to his current position of Chairman and CEO of Gold Hawk. He brings a wealth of experience to Gold Hawk with his diverse background in mine permitting, design, construction and operations.
He has made significant contributions to bringing more than eight mines into production during his career and continues to do so with the acquisition of the Oracle Ridge Copper Mine. He has worked for such global companies as BP Canada Resources (General Manager), Kinross Gold Corporation (Vice President, Operations) and Glencairn Gold Corporation (Chief Operating Officer).
Victor Rozon - Vice President Operations
Vic joined Gold Hawk in February 2008 to provide metallurgical and operational assistance to Company projects. He is a Haileybury School of Mines graduate with more than 25 years experience in the mining industry and has held numerous senior management positions domestically and internationally. Vic also has an extensive background in metallurgy, plant design, feasibility studies, construction and operations. He was part of a team that pioneered heap leaching in Canada's cold climate and build Canada's first CIP plant. Some of his metallurgical expertise includes diamonds, copper, lead, zinc and industrial minerals such as bauxite and phosphate. At present, he is leading the team in the re-permitting of the Oracle Ridge Copper Mine.
Gregory K. Liller - Director and Advisor
Greg received his B.Sc. in Geology from Western State College, Gunnison, Colorado in 1977 and has more than 30 years of experience in mineral exploration and mine development. He has played a key role in turning seven projects into producing mines and in his career has led to the delineation of more than 11 million ounces of gold and more than 500 million ounces of silver in reserves and resources.
From 1993 to 1999, he served as an Officer and Director for a group of Canadian and Australian mining companies working in Mexico, including Gammon Lake, Mexgold, Santa Cruz and Genco. This work included the development and construction of the Lluvia de Oro Mine and the development of the Magistral Gold Mine. In 1999, he joined Gammon Lake Resources as Vice President of Exploration where he continued his exploration and development of the Ocampo Gold-Silver District. Mine construction at Ocampo began in March 2005 and the first gold pour occurred in January 2006. Concurrent with Ocampo, as Vice President of Exploration and a Director of Mexgold, he oversaw the acquisition of the El Cubo Mine complex and its subsequent increase in production from 2,000 gold equivalent ounces/month to 7,000 gold equivalent ounces/month in two years.
Derek Price - Independent Director, Audit Committee Chairman
Derek has spent most of his career in the mining industry. He was Vice President, Finance and CFO of molybdenum producer Thompson Creek Metals Company Inc. from 2003 until his retirement in 2008. He was Vice President, Finance and CFO of Glencairn Gold Corporation from 2003 until 2006. From 1996 until 2003, he was Vice President, Finance and CFO of Wheaton River Minerals Ltd. (now Goldcorp Inc.). Prior to Wheaton River he spent four years as Vice President Finance of gold producer Granges Inc. and 10 years in various roles with base metal producer Cominco Ltd. He is a member of both the Canadian and Australian Institutes of Chartered Accountants. Derek holds an MBA from Griffith University in Australia and a Bachelor of Mathematics from the University of Waterloo in Canada.
Jason Mercier - Vice President and Corporate Secretary
Jason has spent the past decade in Investor Relations, corporate and media relations and Corporate Secretary functions for public Canadian companies with $20M to $15B market capitalization. He joined Gold Hawk in February 2008 and has extensive experience with corporate governance issues, BCSC regulatory compliance, SEDAR/SEDI disclosure, corporate treasury and the corporate finance rules of the TSX Venture Exchange. His background includes crisis and issues management at a boutique agency where he worked with senior executives in mining, investment, telecom, food, transportation, media, professional services, REIT and other sectors to respond to challenges and grow their respective businesses, as well as six years spent as a business reporter and editor.
Chief Financial Officer transition
The Company announces that Omar Salas, Vice President, Finance and Chief Financial Officer, will be leaving the Company in early 2011 in a planned transition.
'On behalf of Gold Hawk management and the Board of Directors, I would like to thank Omar for the past three years of service to the Company and we wish him well in his future endeavors,' said Mr. Drover.
Gold Hawk is pleased to announce that Carlos Escribano is the incoming Vice President, Finance and Chief Financial Officer. Carlos is a Certified General Accountant and graduate of the University of British Columbia and he has held several senior level accounting and financial reporting positions with publicly-listed companies in the mining industry. His experience includes financial and strategic management, debt and equity financing, regulatory compliance, internal controls, budgeting and transitioning to IFRS.
'We welcome Carlos to the Company as leader of our finance and accounting team at our Vancouver headquarters at this key time as we advance our strategy to expand the company,' said Mr. Drover. 'His prior knowledge of Gold Hawk, his achievements in operations, external financial reporting and compliance, and his ability to provide guidance on all financial matters will benefit shareholders.'
The Board of Directors has also approved and granted stock options to Mr. Escribano. Options were granted to purchase 150,000 common shares in the capital of the Company, exercisable for a period of five years at a price of $2.09 per share and subject to the terms and conditions of the Company's Stock Option Plan and TSX Venture Exchange approval. The common share stock options vest one-third immediately upon the date of grant, one-third will vest 12 months from the date of grant and the final one-third of the options will vest 24 months from the date of grant.
About Gold Hawk Resources Inc.
Gold Hawk (TSX VENTURE: GHK) is a Vancouver, Canada-based company with a focus on uncovering overlooked deep-value projects to achieve superior shareholder returns. The Company is the sole owner and operator of Oracle Ridge Mining LLC and copper mine located 24 km northeast of Tucson, Arizona. Gold Hawk has working capital of approximately $25 million, minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.
This document may contain 'forward-looking statements' within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the 'Company') does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved' or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on 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 or accuracy of this release.
Contacts:
Gold Hawk Resources Inc.
Mr. Jason Mercier
Investor Relations
(604) 689-9261
info@goldhawkresources.com
www.goldhawkresources.com