Glencairn Gold Acquires Black Hawk Mining

Toronto-based Glencairn Gold Corporation acquired, on October 21, 2003, all the issued and outstanding common shares of Toronto-based Black Hawk Mining Inc. by way of a three-cornered amalgamation. Glencairn Gold issued shares having a value on October 21, of approximately $43 million to Black Hawk Mining shareholders. In conjunction with the acquisition, Glencairn Gold completed a private placement of 17,105,632 special warrants for proceeds of $7.7 million through a syndicate of agents led by Canaccord Capital Corporation, and including First Associates Investments Inc. and Desjardins Securities Inc. The transaction adds Black Hawk Mining’s El Limon Mine in Nicaragua, which is scheduled to produce 50,000 ounces of gold in 2003 and average 60,000 ounces of gold per year from 2004 to 2005 to Glencairn’s Bellavista gold project in Costa Rica, which is expected to commence operating at a rate of 60,000 ounces of gold per year by late 2004.

Glencairn Gold was represented by Paul Stein, Mark Bennett and Patrick Gleeson of Cassels Brock & Blackwell LLP. Black Hawk Mining was represented by Frank Davis, Chad Hutchison and David Janick of Fraser Milner Casgrain LLP in Toronto. The agents were represented by Michael Hobart and Judith Wilkin of Fogler, Rubinoff LLP.