Toronto, ON –
December 11, 2008 – Hawk Uranium Inc. (TSX-V:HUI, FRANKFURT:HPM) (“Hawk���
or the “Company���) has initiated steps to
extend the term and reduce the exercise price of outstanding warrants
exercisable for a total of 20,348,316 of its common shares.�
These warrants were issued as part of a private placement that closed in
three tranches on January 9, 2007, January 19, 2007 and February 9,
2007.� � Gross proceeds of approximately $4,211,663 were raised
in that private placement.� None of these
warrants have since been exercised, and they remain outstanding.
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As originally issued, these warrants have a term
of two years, expiring on January 9, 2009, January 19, 2009 or February 9,
2009, depending on the date of issuance.� Hawk
proposes to extend the term of these warrants for an additional three
years, with the result that they would expire on January 9, 2012, January
19, 2012 or February 9, 2012, as applicable.�
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As originally issued, these warrants are
exercisable at a price of $0.50 per common share (the “Exercise
Price���). � Hawk is proposing to reduce the
Exercise Price to (i) $0.10 per share from the effective date of the
amendment until the end of the third year of each warrant's term, (ii)
$0.15 per share during the fourth year of each warrant's term and (iii)
$0.20 per share during the fifth year of each warrant's term.� In
addition, consistent with the policies of the TSX Venture Exchange, the
term of these warrants would be shortened to 30 days (commencing seven
calendar days after the tenth Premium Trading Day as hereinafter defined)
if, for ten consecutive trading days (the “Premium Trading Days”) the
closing price of Hawk’s common shares is greater than a pre-determined
price (the "Premium Price") in excess the current Exercise Price.�
While the Exercise Price is $0.10 per share (in essence during the third
year of each warrant's term), the Premium Price will be $0.133 per
share.� During the fourth year of each warrant's term, the Premium
Price will be $0.20 per share.� During the fifth year of each
warrant's term, the Premium Price will be $0.266 per share.
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The proposed amendments to the term and Exercise
Price of these warrants are subject to the approval of the TSX Venture
Exchange.� As a pre-condition for approving a reduction to the
Exercise Price, the TSX Venture Exchange requires, among other things, that
Hawk obtain the written consent of all of the warrant-holders to the
requested changes to the Exercise Price.� Hawk is in the process of
contacting the applicable warrant-holders to request the required
consents.� If all required consents can be obtained in time, Hawk
intends to submit an application to the TSX Venture Exchange requesting
approval.
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If you are a warrant-holder who has not yet been
contacted by Hawk regarding this matter, please immediately contact one of the representatives of Hawk identified
below.
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About Hawk Uranium
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Hawk Uranium Inc. is a Canadian based junior mining company with a
portfolio of diversified exploration projects at various stages of
exploration and drilling, for Nickel/Copper/PGM in the ‘Ring of Fire’
McFauld’s Lake Area of N. Ontario, Gold in N. Ontario, Uranium in N.
Saskatchewan, Ontario and Quebec, and P&NG Leases in S.W. Ontario.
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More detailed information is available on the website at www.hawkuranium.com
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CAUTIONARY STATEMENT
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The TSX Venture Exchange has not reviewed and does
not accept 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.
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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.
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Contacts:
Hawk Uranium Inc.:
H. Vance White
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Corinna de Beer
Investor Relations
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Phone:
Phone:
Fax:
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416-214-2250
866-214-9486
416-367-1954
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Phone:
eMail:
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416-792-0343
ir@hawkuranium.com
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