NOV 6, 2006 - 12:35 ET
High River Gold Arranges Debenture Financing
TORONTO, ONTARIO--(CCNMatthews - Nov. 6, 2006) - High River Gold Mines Ltd. (TSX:HRG) ("High River" or "the Company") announces that it has concluded an agreement for a non-brokered private placement financing by way of a $12 million convertible debenture with three of the Company's largest shareholders. The debenture, which will mature December 31, 2011, has an interest rate of 8.0% per annum, with interest payable quarterly, and is convertible into common shares of the Company at a conversion price of $2.35 per share. The debenture also allows forced conversion by the Company after 18 months, if High River shares trade above a price of $3.25 for a 30 day period. The transaction is expected to close within one week, and is subject to definitive documentation, board and regulatory approval.|
The Company will use the funds to commence a drilling programme at the Bissa Project in Burkina Faso, and for general working capital.
About High River
High River is currently constructing two open-pit gold mines which are scheduled to commence production in the first half of 2007, 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, with annual production from Berezitovy averaging more than 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annualized gold production rate is expected to exceed 325,000 ounces by mid-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.
(416) 360-0010 (FAX)
You can return to the Top of this page