Nov 9 2010
Coalcorp Mining Inc. (NEX: CCJ.H) announces that it has acquired 6,000,000 common shares of Gold Hawk Resources Inc. (TSX-V: GHK) by way of a private placement, at a subscription price of $ 1.25 per common share for $7.5 million.
Based on this transaction Coalcorp now holds approximately 19.8% of Gold Hawk's presently issued and outstanding common shares.
Gold Hawk will use the net proceeds of the private placement to fund exploration and development expenditures on its newly acquired Oracle Ridge Copper property in Arizona and for general corporate purposes.
"We are delighted with this transaction because it furthers Coalcorp's strategy to invest in mid stage development projects with great merit," said Richard Lister, Chairman of Coalcorp, adding that "the Oracle Ridge property has outstanding potential to be a significant producer of copper in the mining favourable environment of Arizona."
Pursuant to the terms of the private placement, Coalcorp is entitled to a representative on Gold Hawk's board of directors so long as it holds at least 5% of the issued and outstanding Gold Hawk common shares. A nominee of Coalcorp, that is acceptable to Gold Hawk and the TSX Venture Exchange, is expected to be appointed to the board within 90 days of closing.
The terms of the private placement also provide Coalcorp, in its sole discretion, the right to participate in any placement of Gold Hawk common shares, or securities convertible into or exchangeable for common shares, initiated on or before October 22, 2011 to maintain it's ownership percentage on a fully diluted basis.