Nighthawk Gold Eliminates Secured Notes
Nighthawk Gold Corp. (NHK.V) has eliminated the outstanding debt with the lenders who participated in the company's January 2012 $7 million offering of secured notes.
All amounts owed under the Secured Notes have been settled; $5.95 million of principal and interest was converted into common shares at $0.12 per share; and $2.05 million of principal and interest was paid from treasury.
The primary participants in the debt conversion agreements were Osisko Mining Corporation, Northfield Capital Corporation and Dundee Corporation. A strong cash balance of $2.5 million remains in Nighthawk's treasury.
"Many of the key participants in the original Secured Note offering, which facilitated the purchase of the Colomac Gold Project last year, have again demonstrated their willingness to stand behind the Company by participating in the Debt Conversion Offering. As a result of the continued support of Osisko, Northfield and Dundee we have been able to clean up the Company's balance sheet while maintaining a healthy cash balance. We will now be in a strong position to continue advancing our Indin Lake Gold Project despite this challenging environment for junior exploration companies." commented David Wiley, CEO.
NHK shares fell half-a-cent to $0.135 on volume of 346,500.
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