Wits Basin Precious Minerals (fka WITM)

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Related Wits Basin PR

Hawk Closes on First Tranche of Financing and Initiates Drilling on the Stanley Line Oil and Natural Gas Project in Lambton County Ontario

MONDAY, DECEMBER 19, 2005 1:03 PM
- BusinessWire
TORONTO, Dec 19, 2005 (BUSINESS WIRE) -- Hawk Precious Minerals Inc. (CNQ:HAWK) (the "Company") is pleased to announce that effective December 14, 2005 it has closed on the first tranche of a brokered private placement offering (the "Offering") of (i) 2,819,500 common share units (each consisting of one common share and half a warrant) for gross proceeds of $563,900 including the conversion of $273,900 of shareholder advances and debts (of which $162,500 were advances for the Company's President, H. Vance White) for 1,369,500 common share units; and (ii) 1,560,000 flow -through units (each consisting of one flow-through commmon share and half a warrant) for gross proceeds of $390,000. Each whole warrant is exercisable for one common share at a price of $0.35 per share until June 14, 2007. The Company may hold additional closings until the full Offering of up to 5,000,000 common share units at a price of $0.20 per unit and up to 4,000,000 flow-through units at a price of $0.25 per unit is sold.
The Company intends to use the net proceeds of the Offering to fund the exploration of its Stanley Line Petroleum and Natural Gas Farm-In Project as well as for working capital. The Company will use an amount equal to the aggregate of the gross proceeds from the sale of the flow-through units to incur Canadian Exploration Expenses, which will be renounced to subscribers of the Flow - Through Units. Except for being the focus of the right to have Canadian Exploration Expenses renounced in favour of their holders, the flow-through shares are identical to the common shares.
Dominick & Dominick Securities Inc., Suite 1700, 150 Adelaide Street West, Toronto, Ontario M5H 3L5 is acting as the Company's agent for the Offering on a reasonable efforts basis. For its services, the Agent will receive a commission of 7% of the gross proceeds and an option to acquire a number of common share units equal to 10% of the number of common share units and flow-through units sold under the Offering, exercisable at a price of $0.25 per unit until December 14, 2006.
Stanley Line Petroleum and Natural Gas Farm-In Project
The Company has an option to acquire from TASC Resources Inc. ("TASC") a 75% working interest in TASC's Stanley Line Petroleum and Natural Gas Leases and a 65% interest in the Natural Gas Storage Agreements pursuant to a farm-in agreement with TASC. The prospect is offset by gas production on both the east and the west with significant gas production to the north and south. TASC is the operator of the project. In order to earn its interest, the Corporation must issue 250,000 common shares to TASC and pay $50,000 to TASC (which issuance and payment have been completed), shoot at least 5 km of seismic exploration to complete a 2D seismic investigation, and drill three test-wells over the prospect, within a 12 month period. To date, the Company has issued the shares, made the payments, and has recently completed approximately 7+ kms of 2D seismic exploration on the Stanley Line Farm-in Project. The exploration has been reported to indicate at least four potential exploration targets, one of which has an area of approximately 70 acres. The Company has been advised by TASC that a well drilling permit has been approved and issued and that the drill rig is currently being mobilized. Drilling should commence immediately and is estimated to take approximately 6 weeks to reach its target depth of the Guelph formation (approximately 2400ft). Additional seismic will also be completed in the next few weeks.
About the Company
The company has both direct or option interests in two mineral exploration properties in Ontario, a holding of 3.45 million shares in Wits Basin Precious Minerals Inc. (WITM) , which company is currently funding a mine rehabilitation in Colorado USA and a gold exploration program in South Africa operated by AfriOre Limited, and a holding of 4,000,000 common shares and 2,000,000 warrants of MacDonald Mines Exploration Limited (TSXV:BMK) which company is carrying out an active exploration program in the McFaulds Lake area of the James Bay Lowlands, the site of a new potential VMS base metal play.
CAUTIONARY STATEMENT The CNQ does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Hawk, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Hawk's expectations are exploration risks detailed herein and from time to time in the filings made by Hawk with securities regulators.
Hawk Precious Minerals Inc. (CNQ:HAWK)
SOURCE: Hawk Precious Minerals Inc.
Hawk Precious Minerals Inc.
H. Vance White
President
[phone] or [phone]
OR
Hawk Precious Minerals Inc.
Walter Brooks
Director
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Fax: [phone]

Copyright Business Wire 2005