Nighthawk Receives $1 Million through Release of Letter of Credit
Toronto, Ontario, March 21, 2013 – Nighthawk Gold Corp. (“Nighthawk” or the “Company”) (TSX Venture Exchange: NHK) is pleased to announce that $1 million from a standby letter of credit (“Letter of Credit”) previously posted in favour of Aboriginal Affairs and Northern Development Canada (“AANDC”) has been released to Nighthawk and added back into the Company’s treasury.
- Nighthawk’s treasury increases to $3.5 million as a result of the cash released from a previously posted Letter of Credit
“Our recent debt settlement offering and the $1 million Letter of Credit release have greatly strengthened our balance sheet and positioned us to continue advancing our Colomac Gold Project,” commented David Wiley, CEO of Nighthawk Gold Corp.
Nighthawk completed the acquisition of a 100% interest in the Colomac Gold Property (the “Colomac Gold Project”) from AANDC, consisting of the past producing Colomac Gold Mine, four surrounding gold deposits and several gold showings in January 2012 (see Company news release on January 26, 2012). Under the terms of the acquisition, Nighthawk committed a maximum of $5 million, secured by three Letters of Credit, to reclaim three disturbed historic exploration sites for which AANDC has the obligation to remediate. These three historic exploration sites are located within the Company’s Indin Lake land package but are not associated with the Colomac Gold Project. Nighthawk did not assume the environmental/reclamation liabilities of these sites directly and is carrying out reclamation activities on behalf of AANDC.
As the result of the successful reclamation of one of the three historical sites, $1 million from the Letters of Credit posted in favour of AANDC has been released to Nighthawk and added back into treasury.
Nighthawk Gold Corp.
Nighthawk (TSX-V:NHK) is a Canadian-based exploration company focused on acquiring and developing gold mineral properties in the NWT, Canada. Its land position covers 222,203 acres or 900 square kilometres in the Indin Lake Gold Camp, located approximately 220 kilometres north of Yellowknife, NWT.
For more information about the Company, please visit www.nighthawkgold.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information, please contact: