MAR 9, 2006 - 09:34 ET
High River Gold to Raise Funding Through Early Exercise of Warrants
TORONTO, ONTARIO--(CCNMatthews - March 9, 2006) - High River Gold Mines Ltd. ("High River") (TSX:HRG) announces that it has obtained the written consent of holders of at least 66 2/3% of outstanding warrants that were issued on July 27, 2005 (the "2005 Warrants"), which 2005 Warrants entitled the holder to acquire one common share at $1.60 until January 27, 2007, to amend the terms of the 2005 Warrants.|
The amendment, which will be effective ten (10) business days after the date of this release (March 23, 2006), will provide that any holder that exercises their 2005 Warrant position in full by March 31, 2006 shall, in addition to one common share of the Company, receive one new common share purchase warrant, with each new warrant entitling the holder to acquire one additional common share of High River at an exercise price of $2.50 exercisable until January 27, 2008.
There are currently 11,912,500 2005 Warrants outstanding of the 12,000,000 Warrants that were originally issued. If all the outstanding warrant holders take advantage of the early exercise date, High River expects to receive $19,060,000 on or before March 31, 2006.
The amendment to the terms of the existing 2005 Warrants has allowed High River to raise capital without the requirement of an additional equity offering. The transaction has received TSX conditional approval.
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 inn the Annual Information Form.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
(416) 360-0010 (FAX)
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