DENVER, COLORADO--(Marketwire - Sept. 9, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; "West Hawk" or the "Company") announces that it has signed definitive loan and debt settlements agreements with Fuselier Holding, LLC ("Fuselier"). The agreements were entered into after further negotiation of the terms of the commitment letter announced by the Company May 30, 2008.
As previously announced on May 30, 2008, West Hawk has issued Fuselier a convertible promissory note in the amount of US$1.685 million (the "Replacement Note") in exchange for Fuselier canceling the approximately US$1.3 million West Hawk secured term note Fuselier acquired from Laurus Master Fund, Ltd. ("Laurus"). The principal amount of the Replacement Note includes a US$385,000 acceleration fee West Hawk had owed to Laurus under the term note at the time Fuselier acquired it. The Replacement Note bears interest at 12% and, under the debt settlement agreement, is repayable in common shares of West Hawk at a price of $0.28 per share. Fuselier has in turn also discharged and released all security interests registered by Laurus against West Hawk's properties, including the Deed of Trust filed against the Company's Figure Four property, security interests filed against its Canadian coal properties, and the pledge of West Hawk's ownership interest in West Hawk Energy (USA), LLC, which holds the Figure Four Project. Further, Fuselier has disclaimed and returned to West Hawk its right, title and interest in and to the 2.5% overriding royalty interest in the Figure Four Property acquired from Laurus.
Under the definitive loan agreement, West Hawk has agreed to extend the maturity date of the $1.3 million bridge loan the Company advanced to Fuselier on May 29, 2008, from June 30, 2008 to September 30, 2008. In the event that the bridge loan is not repaid by September 30, 2008 the Replacement Note will automatically terminate and neither West Hawk nor Fuselier will have any continuing obligations to each other under either the bridge loan or the Replacement Note. Under the original commitment letter, in the event of a default by Fuselier under the bridge loan West Hawk had a right of set-off against the Replacement Note. West Hawk elected not to exercise this right of set-off on June 30, 2008 and instead negotiated an extension of the maturity date to September 30, 2008.
The terms of the debt settlement agreement and the issuance of West Hawk shares on conversion of the Replacement Note are subject to the approval of the TSX Venture Exchange.
On behalf of the Board of Directors,
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 under development include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; and the Groundhog coal property located in northwest British Columbia.
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.
Contact: (303) 524-1424 West Hawk Development Corp. - North America (303) 524-1285 (FAX) Email: news@westhawkdevelopment.com Website: www.westhawkdevelopment.com
-------------------------------------------------------------------------------- Source: West Hawk Development Corp.
News 
Market Data 
Discover 
AI
