NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: HIGH RIVER GOLD MINES LTD.
TSX SYMBOL: HRG
SEPTEMBER 20, 2004 - 15:04 ET
High River Gold Arranges Bridge Financing
TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2004) -
Not for Distribution to US News Wire Services or Dissemination in
the United States
High River Gold Mines Ltd. is pleased to announce it has an
agreement with one investor for a non-brokered private placement
consisting of 3 million common shares of the Company at a share
purchase price of Cdn. $1.60 per share for gross proceeds of Cdn.
$4.8 million. This agreement is subject to definitive
documentation, board and regulatory approval.
High River decided that a small bridge financing was required to
provide the Company with sufficient flexibility to meet its
current project requirements while management evaluates a number
of available strategic opportunities to meet the Company's longer
term financial needs and objectives. After exploring various
bridge options, the Company determined that a small equity
private placement was preferable to a bridge loan.
High River is making considerable progress towards its objective
of "almost tripling" its annual gold production to over 300,000
ounces by 2006. The Company will be constructing two gold mines,
Taparko-Bouroum in West Africa and Berezitovy in Russia, and is
currently carrying out an initiative to increase its controlling
equity interest in the Russian company, OJSC Buryatzoloto.
Recent accomplishments include:
- The purchase of Newmont's "Mill 4" Processing Plant, Crusher
and Conveyor System in Nevada for relocation to Berezitovy (press
release - August 30/04)
- The arrangement, subject to due diligence and credit committee
approval, of a US $36 million project financing for the
Taparko-Bouroum project with Absa Bank Limited of South Africa
(press release - August 12/04)
- The acquisition, subject to regulatory approvals, of a further
13% equity interest in Buryatzoloto from the European Bank for
Reconstruction and Development (EBRD) for shares in High River.
This transaction will increase High River's interest in
Buryatzoloto to 66.8% (63.1% on a fully diluted basis) and will
make the EBRD the second largest High River shareholder with a
10% interest (press release - August 24/04)
- The release of bankable feasibility studies for both properties
which are available on SEDAR. Press releases:
Taparko-Bouroum (June 14/04)
Berezitovy (June 15/04)
- The pipeline of future projects through strategic alliance
partners continues to evolve (press release - August 17/04, for
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
President and CEO
High River Gold Mines Ltd.
(416) 360-0010 (FAX)