NEW YORK, NY, Nov 03, 2008 (MARKET WIRE via COMTEX) -- Hunt Gold Corporation (PINKSHEETS: HGLC) updates its tockholders on the Company's progress on various key issues:
-- The Company confirms that its plans for drilling are being expedited on portions of its "Mockingbird" Gold Mining property in Arizona. To this end, the Company has initially targeted and located drill sites for 7 to 8 drill holes at the "Great West," "Pocahontas" and "Dandy" mines which form part of the "Mockingbird" Gold Mining property. Geochemical and Geophysical work is being overseen at these sites at this time to assist in the identification of the drill targets. It is envisaged that we intend to commence with 1,000 feet of core drilling at this time.
-- These drill sites are not located on State Land and permits are only required from the BLM. These permits will be filed shortly and upon final identification of the intended drill sites. The BLM permits are not expected to take more than 15 days to obtain the necessary approvals. The Company is finalizing the details with various drilling contractors at this time and is very confident that this initial drilling will commence by late November, 2008.
-- The Company has sufficient working capital to expedite and commence with this initial drilling and to drastically increase its drilling as is required and dependent upon drill results.
-- The Company has no intentions of raising any additional cash at this time, to fund its exploration; and is securing an initial US$5 million in traditional bank finance to expedite exploration plans for the first quarter of 2009. The Company's stock price does not in any way affect the Company's plans whatsoever and no placement of shares of the Company's Common Stock is being contemplated whatsoever. 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. 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.
-- The Company has been extremely fortunate to secure the services of additional full time Geologists and other Mining specialists; which are facilitating and are now "fast tracking" (a) the Company's physical exploration work and (b) The completion of the Industry Standard Mining Reports and valuations on all of the Companies Gold Mining & Exploration properties. The ompany has the necessary expertise "on site" at this time and at the various targeted drill sites.
-- The Company is acutely aware of the unwarranted and substantial fall in its stock price of late and comments as follows:
The Company has never been in a stronger position than it is at this time and the Company's stock is trading at a very substantial discount to its actual provable and tangible value; and The Company is commencing physical exploration without any delays which will further serve to increase the value of the Company; and Management of your Company is extremely bullish on the prospects for Gold and on the prices for Gold in the short to long term; and The Company has a strong and very highly experienced Mining Team which is complemented by the necessary experts retained by the Company on a full time basis and others on a Consultative basis; and Certain of the Company's Gold Mining properties have Proven Reserves and have completed bankable feasibility studies. This coupled with the fact that certain of the Company's Gold Mining properties are historic producers; has placed the Company is a very strong position in terms of its Net Asset Value and its ability to secure traditional bank finance to fund operations; and The Company is completing the sale of its "non gold" assets, being its Molybdenum interests. This commodity has become very important as demand for moly is tied to demand for steel used in the petroleum industry (e.g. drill pipe, pipeline construction), which will benefit from accelerated petroleum exploration and development in an era of high oil prices. These assets held through your Company's, American Molygold Corporation; the sale proceeds of these assets this will create a windfall for our Company's stockholders in the first quarter of 2009; and This Company, unlike many other Gold Exploration Companies has no need to raise cash to fulfill its objectives.
-- The Company sees absolutely no reason to effect any Reverse Split of the Company's shares of Common Stock and has absolutely no intention of doing so. Management of the Company is now extremely confident that the Company's stock price will recover and fast without any
Stock Split being necessary.
This will be achieved through an aggressive "Investor Awareness Campaign" to introduce the Company and its Management to Investors, the release of the Reports on the Company's Gold Mining Assets, its true valuations; this being coupled with the commencement of the physical drilling and exploration of the Company's Gold Mining properties, with the immediate targeted
drilling sites being exploited and commencing this month with weekly results being announced to investors; resulting in tangible results being made available to our stockholders.
-- Your Company's Management is urgently reviewing its Public and Investor Relations equirements and is extremely confident that it will be in a position to report back to stockholders this week as to the necessary and urgent steps being taken by your Company's Management to rectify this problem. Your Company's Management realizes that resolution of this issue is key to Company's success and will in all likelihood result in an immediate and very positive effect its stock price as Investors will then be in a position to easily access key Company data which will enable them to assess the Company and its merits.
-- Your Company is at this time completing its Audited Financial Statements and Management can guarantee stockholders that Company will be filing the requisite documentation in order to become a "Reporting Company" with the SEC. Once achieved, we will be seeking a quotation
on the OTC BB. Your Company's Management wishes to place on Record its outlook for Gold over the coming months and years; this being a key issue for any investors in Gold Mining and Exploration Companies: It is our view that Gold mining companies have spent nowhere near
what their counterparts in base metals have poured into new operations and this, along with other fundamentals, will kick gold back up to $1,000/oz. The gold industry, from a production
perspective, is in crisis. In the last seven years, there's been a reduction production capacity. It is expected that we will see another five years of decline in this industry, with the estimated
rate of decline is around three percent a year for the next five years. We expect to see the fundamentals fully assert themselves. On a fundamentals basis, the industry is not investing enough in future production. As a consequence, you'll also see increasing cost pressures on those operations going deeper, increasing strip ratios; mine grades have dropped 30% over the last five years. On fundamentals, we believe the gold price will be strong and certainly we've been encouraged in the fact it's performed relatively well through the current crisis. In the industry we are seeing a structural break and we believe the fundamentals will drive where the price goes. The gold price has been driven by movements in the dollar, the oil price and inflation fears. It has also been driven by investment flows as people look for a safe haven for their cash in times of turbulence. It could be within the next month, the next three months or only within six months that we'll see the fundamentals fully assert themselves and again move towards the $1,000 an ounce target which we see as long-term sustainable. Stockholder enquiries should be directed to the Company's E Mail address in the interim whilst the Company assesses its immediate objective of the appointment of the appropriate Investor and Public Relations company to interact with our stockholders and whilst the Company implements its "Investor Awareness Campaign." The Company's Corporate web site, upon its completion, will be extremely detailed and will provide the answers to large number of stockholder and investor questions. It is guaranteed that this web site will go "live" very shortly and stockholders
may rest assured that its Management is fully aware of the urgency in the expediting of this web site.
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 companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.
For further information contact:
Hunt Gold Corporation
E Mail: Email Contact
Telephone: (954) 840-6956
Contact: Mr. Michael G Saner
SOURCE: Hunt Gold Corporation
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