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MAR 6, 2006 - 11:53 ET
High River Gold Closes Strategic Alliance Agreement with Goldrush Resources Ltd for Burkina Faso
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TORONTO, ONTARIO--(CCNMatthews - March 6, 2006) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) today announced that the Strategic Alliance Agreement (the "Agreement") entered into on January 4, 2006 with Goldrush Resources Ltd. (TSX VENUTRE:GOD) ("Goldrush") has closed. Under the Agreement Goldrush has obtained 21 early-stage exploration permits from High River totaling approximately 4,690 square kilometres in Burkina Faso, West Africa in exchange for an equity interest in Goldrush and back-in rights, including operatorship rights, on mineral deposit discoveries.
Goldrush has issued 6,540,000 common shares and a debenture in the principal amount of Cdn $1,994,277 to High River. The shares have a four-month hold period which expires on July 4, 2006. The debenture is non-interest bearing, due in five years and is convertible, at the option of Goldrush only, into common shares of Goldrush at a deemed value of Cdn $1.00 per share.
High River, who is under contract to Goldrush to manage the exploration programme, has received Cdn $500,000 from Goldrush and will immediately start a first phase exploration programme on the Hounde Group permits, strategically located between the Bondi deposit of Orezone Resources Inc. and the Kampti permit of Goldcrest Resources Ltd.
About High River
High River is currently constructing two open pit gold mines, the Taparko-Bouroum project in Burkina Faso and the Berezitovy project in Russia. Upon successful commissioning of these two development projects, together with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's annual gold production rate is expected 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.
Don Whalen
Executive Chairman
(416) 947-1440
or
High River Gold Mines Ltd.
Laurie Gaborit
VP Investor Relations
(416) 947-1440
(416) 360-0010 (FAX)
info@hrg.ca
www.hrg.ca
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