Good
afternoon!
Please
find enclosed a news release issued today. If you have any questions or
require further information, please do not hesitate to call.
Best
regards,
Sophia
Shane
Ph.
604-689-7842
CANADIAN GOLD HUNTER
CLOSES CDN $6.75 MILLION
PRIVATE PLACEMENT
May 17, 2007 (CGH – TSX)
… Canadian Gold Hunter Corp. (the
“Company”) is pleased to announce that it has completed the non-brokered,
private placement announced on May 2, 2007. The Company sold 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 is payable in
connection with 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 has received regulatory approval
and the securities have been issued to the investors. The shares issued
pursuant to the private placement are subject to a hold period expiring 4
months from the date of closing.
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 and
Veladero in Argentina.
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).
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