September 23, 2008
Hunt Gold Corporation — Financing
Hunt Gold Corporation (PINKSHEETS: HGLC) is negotiating an initial US$5 million in financing to expedite its exploration plans for its Mockingbird Gold Mine in Arizona. This Loan Facility may well, over time, be extended to amount of US$15 million as the exploration at the Mockingbird Gold Mine is substantially expanded.
The Company will be securing this funding through a Mortgage over the title of the Mockingbird Gold Mine. The Lender will have no recourse to Hunt Gold Corporation in respect of this Loan as the Mockingbird Gold Mine is held by a subsidiary company of Hunt Gold Corporation. The Company will be drawing upon this facility as funds are required and expects to finalize this Mortgage at prevailing interest rates.The Company has no desire to raise cash through an issue of shares at the current stock price. Management may consider an issue of shares for cash at such time as its share price accurately reflects the true value of this Company.
Given prevailing low interest rates and our Company's undervalued stock price; the Management of your Company has elected to borrow the funds required through traditional Mortgage Finance over an issue of shares for cash. This strategy will remain unchanged in respect of the working capital financing requirements of all of our Gold Mining properties until such time as our stock price correct itself to its net asset value.
ABOUT HUNT GOLD CORPORATION
Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird,""Ambassador,""Golden Eagle,""Gladstone Lookout,""Lady Alde,""Lookout Silver,""Starlight,""American Flag,""Venezia,""Stormcloud,""Cherry,""Buffalo Limecap,""Red Cloud" and "Federal." The Company has completed the sale of its "American Molygold" interests and will be distributing the entire sale proceeds through a Stock Dividend to its stockholders, this to be announced shortly.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may,""future,""plan" or "planned,""will" or "should,""expected,""anticipates,""draft,""eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.
For further information contact: Investor Insights (Dick Granieri/Gordon Otter) E Mail: Email Contact Telephone: 1-888-572-7934 Hunt Gold Corporation Contact: Mr. Michael G Saner E Mail: Email Contact Telephone: (954) 840-6956
SOURCE: Hunt Gold Corporation