NOV 11, 2005 - 09:57 ET
High River Gold Arranges US $10 Million Bridge Loan Facility For Berezitovy Project Development
TORONTO, ONTARIO--(CCNMatthews - Nov. 11, 2005) - High River Gold Mines Ltd. ("High River" or the "Company")(TSX:HRG) is pleased to announce that it has arranged a US $10 million bridge loan facility (the "Bridge Facility") through Natexis Banques Populaires with Bank Natexis (ZAO) of Moscow, Russia to continue construction work at High River's Berezitovy Project (the "Project"), pending completion of the previously announced US $32 million project finance facility with the European Bank for Reconstruction and Development ("EBRD").|
All documentation for the Bridge Facility is in place. It is expected that the first drawdown of US $5 million will occur on November 16, 2005. The Bridge Facility has a term of 6 months, and carries an annual interest rate of US Libor + 4.25%. The Company may drawdown US $5 million immediately, while the remaining funds are available once Natexis is informed of EBRD Credit Committee approval for the US $32 million facility. In addition, under certain circumstances, shareholder approval of High River's Russian subsidiary, Berezitovy rudnik, the borrower under the Bridge Facility, may be required for drawdown of the last US $1 million.
High River has guaranteed repayment of the Bridge Facility, and has pledged 33% of its shareholding in OJSC Buryatzoloto as security. Under certain circumstances, the term of the Facility can be extended by 6 months, at an annual interest rate of US Libor + 4.75%.
High River is currently constructing two open pit gold mines which are scheduled to commence production next year, being the Taparko-Bouroum Project in Burkina Faso and the Berezitovy Project in Russia. Annual gold production from Taparko-Bouroum is planned at 100,000 ounces in year one, increasing to over 140,000 ounces in the third year of operation, while annual production from Berezitovy is planned at 100,000 ounces. Combined with gold production from High River's 84%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annual gold production is planned to exceed 300,000 ounces by 2007, establishing the Company as a mid-tier gold producer.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected. Risk and uncertainties about the Company's business are more fully discussed in the Management's Discussion and Analysis published in the Company's Annual Report and in the Annual Information Form.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
High River Gold Mines Ltd.
VP Investor Relations & Corporate Secretary
(416) 360-0010 (FAX)
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