CANADIAN GOLD
HUNTER ANNOUNCES CDN $6.75 MILLION PRIVATE PLACEMENT
May 2, 2007 (CGH – TSX) … Canadian
Gold Hunter Corp. (the
“Company”) is pleased to announce that it has agreed to sell on a
non-brokered, private placement basis up to an aggregate of 3 million common
shares of the Company at a price of Cdn $2.25 per share for gross proceeds of
Cdn $6.75 million. A 4% finder’s fee may be payable on a portion of
the private placement. Net proceeds of the private placement will be used
towards the acquisition of a 70% interest in the Caballo Blanco gold property
in Veracruz State, Mexico and the upcoming work
program on the project as well as for general corporate and working capital
purposes. The private placement is subject to regulatory approval.
Shares issued pursuant to the private placement will be subject to a 4 month
hold period.
As announced on April 16, 2007 the Company
signed a letter of intent with Almaden Minerals Ltd. (“Almaden”) to
acquire a 70% interest in the Caballo Blanco gold property. Caballo
Blanco is a large, high-sulphidation epithermal gold system that has seen
limited work to date. The property is located on the Gulf of Mexico roughly 60
kilometres north of the port city of Veracruz.
Infrastructure is excellent as the prospective areas are all located within 10
kilometres of the Panamerican highway and a power plant.
The property covers three large areas of
mineralization known as the Northern Zone, the Highway Zone and the Central
Grid Zone. Extensive alteration typical of high sulphidation gold systems
is associated with the Northern and Highway Zones. Limited drilling (from one
drill site) in the Northern Zone has intersected 108 metres grading 1.14 g/t
gold in drill hole CB-05-03, 92.7 metres grading 1.0 g/t gold in CB-06-01 and
76 metres grading 1.70 g/t gold in CB-06-03 (Almaden news releases dated August
8, 2005 and August 10, 2006). This mineralization is hosted in explosive
breccias with several events of superimposed silicification and alteration.
Examples of high-sulphidation gold deposits are
Yanacocha in Peru, which
contains 13.4 million ounces of gold in 377.2 million tonnes grading 1.1 g/t
gold and Veladero in Argentina,
which contains 11.4 million ounces of gold in 337 million tonnes grading 1.1
g/t gold.
The Central Grid Zone is a gold-rich porphyry
target, in which drill hole CB-04-01 intersected 56 metres grading 0.84 g/t
gold and 0.34% copper (Almaden press release dated June 1, 2005).
Under the terms of the letter of intent, the
Company can earn a 70% interest in the project by expending US$12.0 million
over a period of six years, of which US$1.5 million is a firm commitment in the
first year. In addition Canadian Gold Hunter will issue 1.0 million common
shares to Almaden and make a cash payment of US$500,000 on signing a formal
option agreement. The Company will then fund all costs required for the
completion of a bankable feasibility study; after such time the two parties
shall each fund their pro rata share of all costs required in connection with
development and mining operations.
The geological data in this press release were
verified by qualified person Jan Christoffersen,
P.Eng., Vice President for Canadian Gold Hunter. Canadian Gold Hunter’s
due diligence check samples were analyzed for gold by fire assay by ALS Chemex
in North Vancouver, B. C., Canada.
ON
BEHALF OF THE BOARD
Richard
J. Bailes
President
For further information, please contact:
Sophia Shane, Corporate
Development (604) 689-7842