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WHD West Hawk Development Corp.

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Share Name Share Symbol Market Type
West Hawk Development Corp. TSXV:WHD TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Fuselier Holdings Acquires West Hawk's Secured Term Note

31/05/2008 6:31am

Marketwired Canada


West Hawk Development Corp. (TSX VENTURE:WHD)(FRANKFURT:H5N)("West Hawk" or the
"Company") is pleased to announce that Fuselier Holdings, LLC ("Fuselier") has
completed the previously announced acquisition of West Hawk's secured note
("Note") from Laurus Master Fund, Ltd. ("Laurus") for a purchase price equal to
the outstanding principal balance of $1,299,705.  In connection with the
transaction, Laurus has assigned to Fuselier all of its right, title, and
interest (including security interests) pertaining to or arising from the Note
together with 50% of its 5% overriding royalty interest in West Hawk's Figure
Four Property.


Fuselier has agreed with West Hawk under the terms of a separate binding
commitment letter that West Hawk will repay the principal amount of the Note
plus an acceleration fee of approximately $385,000 to Fuselier by the issuance
of a convertible promissory note (the "Replacement Note") payable in shares of
West Hawk. Fuselier has also agreed to promptly discharge and release all
security interests registered by Laurus against West Hawk's properties,
including the Deed of Trust filed against the Company's Figure Four property,
security interests filed against its Canadian coal properties, and the pledge of
West Hawk's ownership interest in West Hawk Energy (USA), LLC, which holds the
Figure Four Project.   Further, Fuselier has agreed to disclaim and return to
West Hawk its right, title or interest in and to the 2.5% overriding royalty
interest in the Figure Four Property acquired from Laurus.


To complete the transaction, West Hawk has provided a bridge loan to Fuselier
for $1.3 million dollars, which was used by Fuselier to pay the purchase price
for the Note. The bridge loan was provided to meet the completion date required
by Laurus.  Fuselier has agreed to repay West Hawk the $1.3 million not later
than June 30, 2008, subject to a right of set-off against the Replacement Note.


The terms of the Replacement Note are subject to the approval of the TSX Venture
Exchange.


On behalf of the Board of Directors, Dr. Wm. Mark Hart, President and Chief
Executive Officer


About the Company: West Hawk Development Corp is focused on providing valuable,
high-demand energy products from a variety of sources. Assets include the Figure
Four natural gas property located in the Piceance Basin, Colorado, being
developed under a drilling and development agreement; the Groundhog coal
property located in northwest British Columbia; the Tulita coal property located
in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal
property.


Cautionary Note:  This report contains forward looking statements, particularly
those regarding cash flow, capital expenditures and investment plans.  By their
nature, forward looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in the future. 
Actual results may vary depending upon exploration and development activities,
industry production, commodity demand and pricing, currency exchange rates, and,
but not limited to, general economic factors.


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