By Sheri Kasprzak
New York, Feb. 6 - Gold Hawk Resources Inc. said it intends to raise up to C$14 million and at least C$12 million in a private placement.
The offering includes up to 56 million subscription receipts and a minimum of 48 million receipts at C$0.25 each.
Each receipt is exchangeable on a one-for-one basis for units of one share and one half-share warrant upon the completion of the company's acquisition of the Tamboraque mine. The whole warrants are exercisable at C$0.35 each for two years.
Placement agent Jennings Capital Inc. has an over-allotment option for up to 9 million additional receipts exercisable for up to 48 hours before closing.
If the mine acquisition is not completed by March 31, the proceeds from the deal will be returned to the subscribers.
Proceeds will be used to fund the acquisition. The remainder will be used for working capital.
Based in Vancouver, B.C., Gold Hawk is a gold exploration company.
| Issuer: | Gold Hawk Resources Inc.
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| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
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| Amount: | C$14 million (maximum); C$12 million (minimum)
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| Receipts: | 56 million (maximum); 48 million (minimum)
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| Greenshoe: | For up to 9 million receipts
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| Price: | C$0.25
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| Warrants: | One half-share warrant per unit upon exchange
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.35
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| Placement agent: | Jennings Capital Inc.
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| Pricing date: | Feb. 6
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| Stock symbol: | TSX Venture: CGK
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| Stock price: | C$0.33 at close Feb. 3
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