West Hawk to Acquire Thermal Coal Project for $6.25 Million and Proposes a Name Change to West Hawk Energy Corp.VANCOUVER, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- West Hawk Development Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:WHD WHD Wage and Hour Division (US Department of Labor, Employment Standards Administration) WHD Warhead WHD Western Hemisphere Department (International Monetary Fund) WHD Width Height Depth ) ("West Hawk" the "Company") is pleased to announce that it has completed a definitive agreement for the acquisition of a 100% interest in the Australian Creek Thermal Coal Project consisting of 675 hectares of recently issued British Columbia Government Coal licenses and 450 hectares of Coal license applications. The Historic Cariboo Coal Field, 28 Km's south of Quesnel, B.C. was discovered along the banks of Australian Creek, where an oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. coal seam Noun 1. coal seam - a seam of coal seam, bed - a stratum of ore or coal thick enough to be mined with profit; "he worked in the coal beds" coalface - the part of a coal seam that is being cut out-cropped and became known as the Rail track showing. Historic reports prepared in July 1980 for B.C. Hydro's Systems Engineering Division, by Dr. P. T. McCullough, summarized that an annual production of 290,000 tonnes of high grade thermal coal could support a 60 megawatt mine-mouth power plant. Australian Creek has the best potential in the Cariboo Coal Field for developing significant coal reserves based on geophysics, geological mapping and drilling. Two historic drill holes intersected a 24.1 meter and an 18.7m thick coal zone. Results from 25 drill holes and air-borne geophysics identified resources to a depth of 80 meters estimated in area "A" to be 29,462,400 tonnes and in area "B" to be 74,160,000 tonnes for a total of 103,622,400 tonnes. Area "A" was the focus of the report describing the potential to support a power plant development. The coal is sub-bituminous B to C in rank with heating values estimated at 19 400 kJ/kg on a dry basis. The relationship of ash and partings to specific gravity specific gravity, ratio of the weight of a given volume of a substance to the weight of an equal volume of some reference substance, or, equivalently, the ratio of the masses of equal volumes of the two substances. was considered to be similar to that of the nearby BC Hydro BC Hydro and Power Authority is one of the largest electric utilities in Canada, serving more than 1.7 million customers[2] in an area containing over 94 per cent of British Columbia's population is mandated to provide, "reliable power, at low cost, for generations. , Hat Creek deposit. Management believes that the Cariboo Coal Fields project provides the company with an additional significant coal asset in the highly attractive energy sector with potential to access the international thermal coal markets via the adjacent CN Rail line and the Ridley Island Coal Terminal at Prince Rupert B.C. "There has been a spate of recent coal-plant proposals due to the rising cost of natural gas and increasing demand for energy - especially in California. According to the Edison Electric Institute The Edison Electric Institute (EEI) is the association of United States shareholder-owned electric power companies. Its members serve 95 percent of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70 percent of the U.S. , there are currently up to 26 coal plants under consideration in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century ." The historical resource does not use categories stipulated in National Instrument (NI) 43-101. The company advises that it has not done the work necessary to verify this classification of the mineral resource. The company is not treating the historical resource estimate as an NI 43-101-defined resource or reserve verified by a qualified person and the historical estimate should not be relied upon. The company is not aware of any more-recent estimates or data available to the company. The company is commissioning an independent review of all the historical data in order to ascertain an inferred mineral resource estimate compliant with the National Instrument 43-101 guidelines. This news release contains definitions ascribed by the Geological Survey of Canada Paper 88-21 "A standardized Coal Resource Reserve Reporting System for Canada". The information contained in this news release, has been reviewed, approved and deemed reliable by Michael Sandidge P Geo., the qualified person. The details of the $3,250,000 property purchase agreement are as follows; West Hawk has advanced Clive Brookes, an arms length Vendor, $15,000.00CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . The Company agrees to issue 500,000 common shares of the issuer. A further $235,000.00 is due over six years at such time entitling West Hawk to a 75% ownership position fully carrying the vendor's 25% share. The Company can elect to purchase the remaining 25% from the vendor for $3,000,000.00. An underlying, mine gate, royalty payment of $1.00/tonne or 2% whichever is greater is due annually and may be reduced to $0.50/tonne or 1% upon receipt by the Vendor of a $3,000,000.00. The agreement is not subject to any work commitments, there is no finder's fee Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. payable, and the agreement is subject to TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. approval. On another matter the company has been advised by The Ministry of Energy Mines and Resources that the Coal License's for majority of the Company's "Ground Hog Coal Field" holdings and specifically the core tenures being the focus of a forthcoming National Instrument 43-101 compliant report are expected in 2 weeks time. The company also announces the appointment of Dusan Berka, P.Eng., M. Sc. to the technical advisory board Mr. Berka is a graduate electrical engineer from the Slovak Technical University, Bratislava, Slovakia (1968) and a member of the Association of Professional Engineers and Geoscientists of B.C. since 1977. Mr. Berka's more than 36 years of professional experience includes senior management positions at BC Hydro, Power Smart Inc and Saskatchewan Power Corporation. The Company also announces that pending approval of its stock option plan at the AGM AGM annual general meeting AGM n abbr (= annual general meeting) → AG f AGM n abbr (= annual general meeting) → JHV f on October 14, 2005, the company has granted incentive stock options to its directors, officers and consultants to purchase up to a total of 350,000 common shares in the capital stock of the company, exercisable for a period of two years, at a price of $0.20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The company will also be seeking approval at the AGM for a name change from West Hawk Development Corp. to West Hawk Energy Corp. About the Company - West Hawk is a mineral exploration and development company building shareholder value through the acquisition and development of projects focused on industrial commodities currently in heavy demand by China. ON BEHALF OF THE BOARD OF DIRECTORS Michael Townsend, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission The British Columbia Securities Commission (BCSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of British Columbia. External links
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release. West Hawk Development Corp. (TSX VENTURE:WHD) |
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