Hunt Gold Corporation -- Issue of Convertible Bonds
February 19 2009 - 7:58AM
Marketwired
Hunt Gold Corporation (PINKSHEETS: HGLC) has authorized an issue of
up to US$10 million of Convertible Bonds.
These Convertible Bonds are being issued to settle all existing
Loans made to the Company and to be issued by the Company in
tranches, going forward.
The Company will settle all existing outstanding Loans through
the issue of these Convertible Bonds this month. This will leave
Hunt Gold Corporation free of any debt by this month end.
Hunt Gold Corporation's cash requirements are extensive given
(a) its extensive exploration and drilling program on its various
Gold properties which will be an ongoing cost as no halt nor delay
is planned for this program (b) its ongoing monthly overhead costs
(c) the costs of its Geologists, Professional Advisors and
Consultants (d) its fifty percent share of the Joint Venture
Company which is actively acquiring shares of Hunt Gold
Corporation's Common Stock for short to medium term investment
purposes and (e) the proposed stock buyback and cancellation
program announced by the Company.
The issue of these Convertible Bonds will eliminate all existing
Loan Accounts owed by the Company to various Loan Holders whom are
all Accredited Investors; and will be issued to these Accredited
Investors as the Company raises additional sums of cash on an
ongoing basis. This will serve to (a) Strengthen the Company's
Balance Sheet by removing these Liabilities and (b) serve to avoid
any issue of the Company's shares of Common Stock for cash, this is
expected to be for a period of not less than one year.
The terms of the Convertible Bonds include, without limitation,
that: (i) at the option of the holder, the Convertible Bonds are
convertible into shares of Hunt Gold Corporation's Common Stock, at
any time after March 31, 2010 and not before that date under
circumstances; and at a conversion price calculated at a 10% (ten
percent) discount to average closing price of Hunt Gold
Corporation's shares of Common Stock for 5 (five) trading days
prior to any such conversion. These Bonds will bear interest at the
rate of 9% (Nine percent) per annum.
The Convertible Bonds have not been (and will not be) registered
under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or any applicable exemption
from registration requirements. No Underwriting Commissions or
Discounts will be payable in any issue of these Convertible
Bonds.
The Company is relying on Rule 506 of Regulation D as the
applicable exemption from the registration requirements of the
Securities Act of 1933. The Convertible Bonds are being issued only
to "accredited investors," as such term is defined in Rule 501 of
Regulation D.
The Company undertakes to inform its investors as it issues
these Convertible Bonds.
ABOUT HUNT GOLD CORPORATION
Hunt Gold Corporation is a Gold Mining & Exploration Company
focused on the development and exploration of its Gold properties,
namely "Mockingbird," "Ambassador," "Golden Eagle," "Gladstone
Lookout," "Lady Alde," "Williamson," "Blue Copper Mine,"
"Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry,"
"Buffalo Limecap," "Red Cloud" and "Federal." The Company has
completed the sale of its "American Molygold" interests and will be
distributing the entire sale proceeds through a Stock Dividend to
its stockholders. The Company has disposed of its "Lookout" Silver
Projects and will be retaining an amount of US$65 million in quoted
stock from that disposal.
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. "Forward-looking statements" describe future expectations,
plans, results, or strategies and are generally preceded by words
such as "may," "future," "plan" or "planned," "will" or "should,"
"expected," "anticipates," "draft," "eventually" or "projected."
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a companies' annual report on Form 10-K or 10-KSB and
other filings made by such company with the SEC.
For further information contact: MDM Worldwide Solutions, Inc.
(Investor Relations Enquiries) E Mail: Email Contact Telephone:
(646) 961-4458 Contact: Richard Hausig Hunt Gold Corporation
(Corporate Enquiries) E Mail: Email Contact Telephone: (954)
840-6956 Contact: Mr. Michael G Saner
Hunt Gold (CE) (USOTC:HGLC)
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