Teuton Resources Corp. press release
Hawk Uranium Inc. Completes Purchase of Additional Holdings in the Ring of Fire, Appoints New Director, Proposes Name Change
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Zinc · Lead · Magnesium · Nickel · Cobalt · Bismuth · Molybdenum · Tungsten · Antimony · Arsenic · Platinum · Iron · Canada
May 11, 2010 (TheNewswire.ca) --
Toronto, May 11, 2010 - Hawk Uranium Inc. (OOTC:HWKPF) (TSXV:HUI) (TSX-V:HUI, FRANKFURT:HPM, OTC.PK:HWKPF)(the "Company") is pleased to announce that, following the execution of a Purchase and Assumption Agreement (the "Agreement") with Canadian Orebodies Inc. (TSXV: CO)("Orebodies") - announced in the Company's press release of April 29, 2010 - the Company has acquired (1) a 100% legal and beneficial interest in Orebodies' eight 100% owned properties and (2) all of Orebodies' interests in Orebodies' seven 50% joint venture properties with Macdonald Mines Exploration Ltd. (TSXV: BMK) and Temex Resources Corp. (TSXV: TME)(the "Properties"). The Properties consist of approximately 444 100%-owned claim units comprising approximately 7,104 hectares, and approximately 891 50%-owned claim units comprising approximately 14,256 hectares, all which are located in the James Bay Lowlands "Ring of Fire", in Ontario. The 100%-owned properties would remain subject to a 10% net profits interest in favour of Orebodies, and the 50%-owned properties remain subject to a net profits interest currently equal to 5% of the net profits received from such properties (which would be converted to a 0.15% net smelter returns royalty if Hawk's interest in those properties is reduced to less than 10% and therefore converted to a net smelter returns royalty).
As consideration for the purchase of the Properties, the Company has:
(1) issued to Orebodies an aggregate amount of 5,000,000 common shares of the Company;
(2) issued to Orebodies 4,000,000 share purchase warrants of the Company, each warrant entitling Orebodies to acquire one common share of the Company at an exercise price of $0.15 per share for a period of four years from closing; and
The termination of the share purchase warrants issued to Orebodies could be accelerated in the third and fourth year of their term if the closing price for the Company's common shares is at or above $0.30 per share in the third year, and $0.40 in the fourth year, for ten consecutive trading days.
The closing of the transaction has been approved by the TSX Venture Exchange (the "Exchange") and the joint venture partners on the 50%-owned joint venture properties. The Company has paid a total finder's fee of 450,000 shares to two parties who introduced Company to this opportunity.
The properties to be acquired from Orebodies will complement Hawk's existing interests in the area through its joint venture properties with Macdonald Mines Exploration Ltd.
"The addition of these properties in the much sought-after Ring of Fire district is a decisive step in the implementation of the Company's mandate and focus - the advancement of the exploration and development of its properties in what promises to become the next major mining camp in Canada. Hawk intends to play an important role in this area" said Vance White, President of Hawk.
Appointment of New Director
Pursuant to the Agreement, the Board of Directors Company has appointed Gordon McKinnon, as a nominee of Orebodies, to the Board of Directors of the Company.
Mr. McKinnon graduated with an Honours Bachelor degree in Management and Organizational Studies from the University of Western Ontario in 2006. He currently serves as President, CEO and a Director of Canadian Orebodies Inc., a principal of McKinnon Prospecting Ltd., a private exploration company, a director of Mill City Gold Corporation (TSXV:MC) , and as a director of PhosCan Chemical Corporation (OOTC:PCCLF) (TSX:FOS) , a bankable-feasibility stage phosphate company. Mr. McKinnon has been exposed to all aspects of the exploration and mining and mining business which has prepared him for his career in the industry. Prior to joining Canadian Orebodies in 2008, Mr. McKinnon served as Manager of Corporate Development with Baltic Resources Inc.
We are delighted that Gordon has agreed to join the board of Hawk," said Mr. Vance White, President of Hawk Uranium Inc. "I have no doubt that his track record and experience in the mining industry will contribute to the achievement of our mandate. His experience will add value as we pursue current expansion opportunities."
Proposed Name Change
To reflect the Company's decision to focus on its newly acquired properties in the James Bay Lowlands "Ring of Fire" region in Ontario, the board of directors of the Company has approved a name change of the Company to "Ring of Fire Resources Inc.". The name change will be proposed to shareholders of the Company at the special meeting of the shareholders of the Company that it anticipates holding in the next two months.
About the Properties:
Preliminary exploration work in excess of $2 million that included a Geotech heliborne VTEM Geophysical Survey together with a ground follow-up HLEM survey on a number of anomalies was carried out by Orebodies and/or its JV Partners on all the 15 Orebodies properties. Three anomalies were drill tested by four diamond drill holes on two of the 100% owned properties, while three anomalies were drill tested with three diamond drill holes on two of the 50% owned properties.
There remain a number of VTEM anomalies that merit additional detailed interpretation, ground follow-up and eventual diamond drill testing. A complete analysis of each property will be conducted in the near future. The Company intends to carry out and immediate geophysical down hole probe of the drill holes located on the Orebodies previously drilled."
About Hawk Uranium Inc.:
Hawk Uranium Inc. is a Canadian based junior exploration company with a portfolio of diversified projects at various stages of exploration and drilling - for Uranium in Northern Saskatchewan and Quebec, Gold in Ontario and Nickel/Copper/PGM in the ‘Ring of Fire', McFauld's Lake Area of Northern Ontario.
More detailed information on the Company is available on the website at www.hawkuranium.com.
Cautionary Statement:
Neither 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 or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
The foregoing information may contain forward-looking statements relating to the future performance of Hawk Uranium Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from Hawk's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Hawk with the TSX Venture Exchange and securities regulators. Hawk does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Hawk Uranium Inc.
H. Vance White, President
Phone: 416-214-2250
Phone: 866-214-9486
Fax: 416-367-1954
Corinna de Beer, Investor Relations
Phone: 416-792-0343
eMail: ir@hawkuranium.com
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