Hawthorne Gold Announces Termination of Option Agreement
06 Maggio 2010 - 7:08PM
Marketwired Canada
Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) announces
that it has given notice to Eureka Resources Inc. ("Eureka") to terminate
Hawthorne's option to acquire up to a 51% interest in 18 mineral claims (the
"Eureka Claims") located in central British Columbia pursuant to a property
option agreement with Eureka dated October 31, 2006 (the "Eureka Option").
The Eureka Option is subject to a two kilometer area of interest (the "Area of
Interest") and certain additional mineral claims that Hawthorne acquired or has
the option to acquire, as the case may be, fall within the Area of Interest.
Specifically, Hawthorne acquired four mineral claims covering approximately 197
hectares pursuant to an agreement with Lloyd Addie in September 2007 (the "Addie
Claims"). Hawthorne entered into an option agreement (the "Dajin Option
Agreement") with Dajin Resources Corp. ("Dajin") in May of 2007, as subsequently
amended, and a further option agreement (the "Bourdon Option Agreement") with
Robert Bourdon ("Bourdon") also in May of 2007. Pursuant to the terms of the
Dajin Option Agreement, Hawthorne has the option to acquire a 70% interest in
eighteen mineral claims covering 7,930 hectares (the "Dajin Claims") and
pursuant to the terms of the Bourdon option agreement, Hawthorne has the option
to acquire a 100% interest in one mineral claim covering approximately 296
hectares (the "Bourdon Claim"). Each of the Addie Claims, the Dajin Claims and
the Bourdon Claim fall within the Area of Interest and Eureka has elected to
have the Addie Claims transferred to Eureka subject to a 2% Net Smelter Returns
Royalty. Eureka has further elected to have the option to acquire the Dajin
Claims and the Bourdon Claim to be transferred from Hawthorne to Eureka pursuant
to the terms of the Dajin Option Agreement and the Bourdon Option Agreement
respectively. In order to exercise the Bourdon Option Agreement and to acquire
the Bourdon Claim, Eureka must pay Bourdon a payment of $50,000 and issue
Bourdon 25,000 common shares on or before May 31, 2010. The Bourdon Claim is
subject to a 2% Net Smelter Returns Royalty and the transfer of the Bourdon
Option Agreement from Hawthorne to Eureka is subject to Eureka entering into a
transfer agreement with Bourdon. In order to exercise the Dajin Option Agreement
and to acquire the Dajin Claims, Eureka must incur a further $200,000 in
property expenditures on the Dajin Claims on or before November 30, 2011. The
Dajin Claims are subject to a 2% Net Smelter Returns Royalty and the transfer of
the Dajin Claims from Hawthorne to Eureka is subject to Eureka entering into a
transfer agreement with Dajin.
Pursuant to the terms of the Eureka Option, the Company is required to keep the
Eureka Claims in good standing for three years from the date of termination and
Hawthorne has satisfied such obligation. In connection with the termination of
the Eureka Option, Eureka has agreed to allow Hawthorne to leave the site with
drill holes and roads in place in exchange for (i) Hawthorne transferring its
Ministry of Energy, Mines and Petroleum Resources Exploration Permit for the
Eureka Claims along with a $50,000 environmental bond for such claims to Eureka
(ii) Hawthorne transferring to Eureka certain buildings, equipment and
improvements on the Eureka Claims and (iii) Hawthorne delivering to Eureka
copies of all reports, maps, assay results and other technical data compiled by
or in the possession of the Company with respect to the Eureka Claims that have
not already been provided by the Company to Eureka. Hawthorne has fulfilled its
obligations under the Eureka Option and now no longer has any rights or
interests in the Eureka Claims. As noted above, the Addie Claims will be
transferred from Hawthorne to Eureka and when such transfer is complete,
Hawthorne will have no right or interest in the Addie Claims. Similarly, the
Dajin Option Agreement and the Bourdon Option Agreement will be transferred from
Hawthorne to Eureka and when such transfer is complete, Hawthorne will no longer
have any right in the Dajin Claims and the Bourdon Claim.
The decision to discontinue the Eureka Option and the Company's Frasergold
Project in general was based on management's decision to focus the Company's
resources on its wholly-owned subsidiary, Cassiar Gold Corporation, which owns
the Table Mountain Gold Mine and the Taurus Gold Deposit. The Company will
continue to work towards production at Table Mountain and the development at the
nearby Taurus deposit.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development
company with key properties located 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 Table Mountain and the continued resource development at the
nearby Taurus deposit.
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.
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