Hawthorn Resources Corp. (CSE: HWTN) is pleased to announce that it has closed its previously announced subscription receipt offering.

Under the Offering, the Company issued an aggregate of 14,807,315 Subscription Receipts at a price of $0.27 per Subscription Receipt for aggregate proceeds of $3,997,975.05.

Each Subscription Receipt, upon the satisfaction of certain conditions related to the Company’s previously announced proposed acquisition of Stampede Metals Corporation on or before the escrow release deadline of July 31, 2025 or such later date as the escrow agent and the Company agree, will be automatically converted, without payment of any additional consideration and without any further action on the part of the holder thereof, into a unit, comprised of one post 1:0.75 consolidation common share of the Company and one-half of one share purchase warrant. Each whole warrant will be exercisable to acquire a post-Consolidation common share at a price of $0.40 per share until December 23, 2026, subject to acceleration in the event that the post-Consolidated common shares of the Company trade at or above $0.60 for ten consecutive trading days. If the Escrow Release Conditions are not met by the Escrow Release Deadline, the aggregate Subscription Proceeds will be returned to subscribers without deduction.

President Ralph Shearing, P.Geol. of Hawthorn Resources, commented: “With nearly $4 million in financing received, upon completion of our acquisition of the Prince Silver Project, Hawthorn is fully funded to execute on our 2025 exploration priorities. We’re excited to advance the Prince Silver Project — a near-surface CRD deposit with historic production, strong silver-gold-zinc-manganese mineralization identified in over 129 historic drill holes with excellent exploration expansion potential.

In connection with the Offering, upon conversion of the Subscription Receipts into the underlying Units, the Company will pay finders fees of $98,309.98 to eligible registrants assisting in the Offering and issue an aggregate of 420,111 broker warrants, with each Broker Warrant entitling the holder to acquire one post-Consolidated common share of the Company at a price of $0.40 per share for until December 23, 2026.

All securities issued under Acquisition and in the Offering will have a hold period of four months and one day pursuant to applicable securities laws and CSE policy. In accordance with CSE policies, the Company has obtained written shareholder approval for the issuance of the aggregate post-Consolidated common shares to be issued pursuant to the Acquisition and the Offering.

Completion of the proposed Acquisition is subject to a number of conditions, including, but not limited to, completion of the concurrent financing, satisfaction by the parties of all applicable filing requirements pursuant to the policies of the Canadian Securities Exchange, and acceptance and receipt of all applicable regulatory, corporate and shareholder approvals.

About Hawthorn Resources Corp. 

Hawthorn is a silver exploration company focused on advancing the Prince Silver Project in Nevada, USA. Mineralization is open in all directions and is near surface. Hawthorn also holds option interest in Broken Handle Project, an early-stage mineral exploration project located southern British Columbia, Canada.

For further information, please refer to the Company’s disclosure record on SEDAR+ (www.sedarplus.ca).

SOURCE: Hawthorn Resources Corp.