Thursday, February 19, 2009

Hunt Gold Corp. (HGLC.PK) Issues Convertible Bonds to Eliminate All Debt and Strengthen Balance Sheet

Today before the opening bell, Hunt Gold Corp. announced that it has authorized an issue of up to $10 million of Convertible Bonds. These bonds are being issued to eliminate existing loans made to the company. The company intends to settle all of these loans through the issuance of convertible bonds by the end of this month.

Hunt Gold Corporation’s cash requirements are enormous considering its extensive exploration and drilling program, ongoing monthly overhead costs, the costs of its Geologists, Professional Advisors and Consultants, its fifty percent share of the Joint Venture Company which is actively acquiring shares of Hunt Gold Corp., and the proposed stock buyback and cancellation program.

The terms of the Convertible Bonds include, without limitation, that: (i) at the option of the holder, the Convertible Bonds are convertible into shares of Hunt Gold Corporation’s Common Stock, at any time after March 31, 2010 and not before that date under circumstances; and at a conversion price calculated at a 10% (ten percent) discount to average closing price of Hunt Gold Corporation’s shares of Common Stock for 5 (five) trading days prior to any such conversion. These Bonds will bear interest at the rate of 9% (Nine percent) per annum, and will only be issued to “accredited investors,” as such term is defined in Rule 501 of Regulation D.

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