UPDATE 2-Gold Hawk to sell remaining Peru interests for $4.4 mln

* To sell remaining 15 pct interest to Nyrstar Holdings

* Says it has $19.3 mln in cash and investments

* Stock up as much as 15 pct
(Adds details, stock movement)

July 7 (BestGrowthStock) – Canadian mining company Gold Hawk
Resources Inc (GHK.V: ) said it signed a deal with Belgium’s
Nyrstar Holdings CV (NYR.BR: ) to sell its remaining 15 percent
interest in the operating unit of the Coricancha Mine in Peru
for $4.4 million.

Nyrstar, the world’s biggest producer of zinc, bought 85
percent majority interest in Gold Hawk’s Peruvian operating
unit Compania Minera San Juan (Peru) S.A. for $15 million in
November last year.

The Coricancha mine, with more than 60 years of operating
history, currently comprises a 600-tonne per day ore processing
facility, underground mine and reserves and resources
containing gold, silver, zinc, lead and copper.

Operations at the mine were suspended in May 2008. However,
Nyrstar said after acquiring the stake last year, it had
recommissioned the mine, and is about to complete construction
of the new tailings facility.

The operations would likely ramp-up to an initial
production rate of about 20,000 troy ounces gold per annum, 1
million troy ounces of silver, and 5,000 tonnes of zinc in
concentrate by the end of 2010, Nyrstar said.

Gold Hawk, which had $19.3 million in cash and investments
as of the transaction closing Wednesday, said the Peru unit was
not expected to generate cash flow to the company for at least
three years due to a loan repayment schedule and anticipated
capital expenditures.

Gold Hawk shares were up 13 percent, or 13 Canadian cents,
at C$1.14 Wednesday afternoon on the Toronto Venture Exchange.
They touched a high of C$1.16 earlier in the day.
(Reporting by Koustav Samanta in Bangalore; Editing by Maju

UPDATE 2-Gold Hawk to sell remaining Peru interests for $4.4 mln