NOV 8, 2007 - 08:34 ET
High River Gold Mines Ltd. Closes Cdn$100 Million Financing
TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - |
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
High River Gold Mines Ltd. (TSX:HRG) ("High River" or the "Company") is pleased to announce today that it has completed its previously announced "bought deal" public offering of units for gross proceeds of Cdn$100,130,000.
A syndicate of investment dealers led by GMP Securities L.P. and including CIBC World Markets Inc., Cormark Securities Inc. and Dundee Securities Corporation purchased 32.3 million units at a price of Cdn$3.10 per unit pursuant to the offering.
Each unit was comprised of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of High River at a price of Cdn$4.00 at any time prior to November 8, 2010. Net proceeds of the offering will be used by the Company for debt reduction, exploration and general corporate purposes, including working capital.
The Company has granted the underwriters an over-allotment option, which remains exercisable in whole or in part for a period of up to 30 days following the closing of the offering, to purchase additional units at the offering price and/or additional warrants at Cdn$0.38 per warrant, such that the aggregate number of common shares and warrants issuable shall not exceed 4,845,000 common shares and 2,422,500 warrants, respectively.
These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
High River is a gold company with operating and developing mines in the Russian Federation and Burkina Faso, and is bringing two new open-pit gold mines into production this year, the Taparko-Bouroum Gold Mine in Burkina Faso (September) and the Berezitovy Gold Mine in Russia (4Q). Gold production from Taparko-Bouroum is planned at 100,000 ounces for 2008 increasing to approximately 140,000 ounces in 2009 and future years, and annual production from Berezitovy is expected to exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable unhedged gold production is expected to exceed 300,000 ounces in 2008. In addition, the Company has two advanced exploration projects, the Bissa Gold Project in Burkina Faso and the Prognoz Silver Project in Russia. These projects are expected to significantly add to the Company's production profile in the future.
This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's estimated production as well as the expected impact of the Bissa Gold Project in Burkina Faso and the Prognoz Silver Project on the Company's production profile in the future. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks", "expects", "budget" or variations of such words or state that certain actions, events or results "may", "could", "will", "will be", "would be" or "is expected to be". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of High River to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors, government regulation and approvals, environmental risks, actual results of exploration activities, future commodity prices, capital expenditures, possible variations in ore reserves, resources, grade or recovery rates, uncertainties involved in interpreting drilling results and other geological data, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties, requirements for additional capital, changes in project parameters as plans continue to be refined, conclusions of economic evaluations as well as those factors discussed in the section entitled "Risk Factors" in High River's Annual Information Form and in the section entitled and "Risks and Uncertainties" in its Management's Discussion and Analysis published in its Annual Report, each for the year ended December 31, 2006, available on www.sedar.com. Although High River has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. High River does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
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