DEC 5, 2005 - 09:07 ET
High River Gold Completes First Drawdowns On Development Projects In Burkina Faso And Russia
TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2005) - High River Gold Mines Ltd. (TSX:HRG)("High River" or the "Company") is pleased to announce that, having completed the Company's equity financing commitments for both of its development projects, High River has now completed first draws under the two previously announced project financing facilities.|
Taparko-Bouroum Project, Burkina Faso
Definitive documentation for the US $35 million project finance facility (the "Facility") with Royal Gold, Inc. of Denver, Colorado (Royal Gold), to fund completion of the construction of the Taparko-Bouroum open pit mine and processing plant in Burkina Faso, West Africa, was executed on December 1, 2005, and first funding in the amount of US $6.4 million has now been received by the Company. Further drawdowns on the Facility are linked to standard project milestones.
Berezitovy Project, Russia
To continue construction work at High River's Berezitovy Project, pending completion of the previously announced US $32 million project finance facility with the European Bank for Reconstruction and Development (EBRD), the Company entered into a US $10 million bridge loan facility (Bridge Facility) through Natexis Banques Populaires with Bank Natexis (ZAO) of Moscow, Russia. A first drawdown in the amount of US $3 million was received on November 16, 2005.
High River is currently constructing two open pit gold mines which are scheduled to commence production next year, 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
(416) 947 1440
(416) 360 0010 (FAX)
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