Cusac Receives Final Court Order For Arrangement with Hawthorne
March 26 2008 - 5:06PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: HGC)(WKN: A0M55U) and
Cusac Gold Mines Ltd. ("Cusac") (TSX: CQC)(OTCBB: CUSIF)(FRANKFURT:
DCB) announce that the Supreme Court of British Columbia has issued
a final order approving the statutory plan of arrangement (the
"Arrangement") between Hawthorne and Cusac. Under the terms of the
Arrangement, shareholders of Cusac will receive one (1) common
share of Hawthorne in exchange for each nineteen (19) Cusac common
shares. In addition, for each two (2) dollars of principal and
interest owed to each Cusac convertible debentureholder, Hawthorne
will issue one (1) Hawthorne common share.
On closing of the Arrangement, Hawthorne will issue
approximately 6.15 million common shares to Cusac shareholders and
debentureholders and Hawthorne will have approximately 22.5 million
common shares issued and outstanding. Cusac stock options and
warrants will be assumed by Hawthorne, using the effective nineteen
(19) to one (1) ratio.
Completion of the Arrangement remains subject to certain
conditions set out in Cusac's Management Information Circular (the
"Information Circular") dated February 13, 2008, a copy of which is
available at www.sedar.com. Cusac and Hawthorne are diligently
working to complete the Arrangement which is expected to close in
early April. There can be no assurance that the Arrangement will be
completed as proposed or at all.
Registered shareholders of Cusac will be required to deposit
their respective Cusac common share certificates along with a
validly completed letter of transmittal (the "Letter of
Transmittal") in order to receive their Hawthorne common shares.
Similarly, Cusac debentureholders will be required to deposit their
respective Letter of Transmittal in order to receive their
Hawthorne common shares. Cusac expects to send a Letter of
Transmittal to the Cusac shareholders and debentureholders in the
week of March 31st. Further details on the process of exchanging
Cusac common shares and Cusac debentures for Hawthorne common
shares are set forth in the Information Circular.
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 together with mining veteran
Michael Redfearn. Hawthorne's goal is to become a junior gold
producer through planned production at Table Mountain in 2009 and
continued resource development at the Frasergold and Taurus
deposits.
Pursuant to an option agreement dated October 31, 2006 between
Hawthorne and Eureka Resources Inc. (TSX VENTURE: EUK), Hawthorne
can earn a 51% interest in the Frasergold property by completing
sufficient exploration expenditures totalling $3.5 million
(expended), completing a feasibility study by April 30, 2010 and
making cash payments totalling $175,000 ($75,000 paid to date)
before October 31, 2009. Hawthorne can earn a further 9% (for a
total of 60%) by arranging financing for 70% of the estimated
capital costs for production.
About Cusac Gold Mines Ltd.
Founded in 1966 by respected mining leader Guilford Brett, Cusac
is a junior gold exploration and past-producing company focused
primarily on the Cassiar Gold Property, a 175 square kilometer
package of mineral claims located in north central British
Columbia, Canada. The Cassiar Gold Property hosts a number of gold
assets, including the Taurus Deposit, the fully permitted Table
Mountain Gold Mine, and the Taurus II early stage exploration
area.
HAWTHORNE GOLD CORP.
Richard J. Barclay, President & CEO
CUSAC GOLD MINES LTD.
David Brett, President & CEO
Certain information regarding the companies 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, closing of the Arrangement, 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.
The TSX and TSX Venture Exchange do not accept responsibility
for the adequacy or accuracy of this release.
Contacts: Hawthorne Gold Corp. Robert Ferguson (604) 629-1505 or
Toll Free: 1-888-629-1505 Hawthorne Gold Corp. Todd Hanas Toll
Free: 1-866-869-8072 Website: www.hawthornegold.com Cusac Gold
Mines Ltd. Ravinder Mlait (604) 682-2421 or Toll Free:
1-800-670-6570 Website: www.cusac.com
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