VANCOUVER, BRITISH
COLUMBIA--(Marketwire – Nov. 6, 2009) - Hawthorne
Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC)(PINK SHEETS:HWTHF) announces that further to
its news release of October 29, 2009, the Company closed a final tranche of
340,000 Units (the "Final Tranche") at a price of $0.40 per Unit for additional
gross proceeds of $136,000. As disclosed in the Company's October 29th
news release, the Company previously closed on 1,062,500 Units (the "First
Tranche" and together with the Final Tranche, the "Non-Brokered Offering") at a
price of $0.40 for gross proceeds of $425,000. In total, the Non Brokered
Offering consisted of 1,402,500 Units for gross proceeds of $561,000.
Each Unit consists of one common share
in the capital of the Company (a "Common Share") and one-half of a
transferable share purchase warrant (a "Warrant"). Each whole Warrant
will entitle the holder thereof to purchase one Common Share at a price of
$0.50 per Common Share for a period of 12 months following the closing of the
Non-Brokered Offering. The Warrants are subject to an accelerated exercise
provision in the event that the trading price of the Common Shares have closed
at or above $0.75 or more for a period of 10 consecutive trading days after
closing of the Non-Brokered Offering. If this occurs, the Company can elect to
give notice to the Warrant holders via news release that the Warrants will
expire 30 days following the date of such news release.
The Company paid a total of $36,120 in
cash and issued 90,300 Finder's Warrants (as such term is defined below),
equivalent to 7% of the gross proceeds and 7% of the Units respectively,
sourced by eligible finders in respect of certain Units placed under the
Non-Brokered Offering. Each Finder's Warrant (a "Finder's Warrant") is
exercisable at $0.50 per Common Share for a period of 12 months after closing
of the Non-Brokered Offering.
All securities issued in connection
with the Non-Brokered 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 Non-Brokered
Offering will be used to fund the continued resource and mine development of
the Company's Cassiar Gold Mine and Taurus gold deposit and for general
corporate working capital.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development
company with key properties 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
Cassiar Gold Mine and to continue resource development of the nearby Taurus
deposit, as well as the Frasergold deposit in the south central British Columbia
Cariboo region. Hawthorne continues to review potential acquisitions, focusing
on high quality, advanced gold development opportunities.
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.
A feasibility study has not been completed and there is no certainty the
disclosed targets will be reached nor that the proposed operations will be
economically viable.
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 of this release.