SEP 22, 2008 - 08:33 ET
High River Gold Comments on Share Price Decline
TORONTO, ONTARIO--(Marketwire - Sept. 22, 2008) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) would like to comment on the large share transaction volume and consequent share price decline resulting from trading late on Friday September 19, 2008. The Company believes that the share price decline was related to High River's deletion from several S&P/TSX indices, and the resulting selling by index funds.|
On September 12, 2008, Standard & Poor's Canadian Index Operations issued a press release announcing its quarterly index changes. In this press release it was announced that High River, among others, was to be deleted from the S&P/TSX Composite, Global Gold, Global Mining, and SmallCap Indices, effective as of market open on September 22, 2008. To adjust for these index changes, index funds likely sold all of their remaining High River shareholdings late last Friday. Several brokerage analysts specializing in stock index trading estimated that these funds were required to sell approximately 15 million High River shares to re-align their holdings with the announced changes. Over 9 million High River shares, or nearly 4 times the average daily trading volume, traded during the last hour of trading on Friday, causing the share price to drop by more than 40%.
The Company is not aware of any other corporate developments to explain this share price decline on September 19, 2008.
High River believes that its current share price significantly undervalues the Company, and is currently examining various initiatives to remedy this situation.
About High River
High River is an unhedged gold company with producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia. High River is bringing two new open-pit gold mines into production. The Taparko-Bouroum Gold Mine in Burkina Faso achieved commercial production in October 2007, and the Berezitovy Gold Mine in Russia is expected to achieve commercial production shortly. At full production, annual gold production is planned at 100,000 ounces at Taparko-Bouroum and is expected to exceed 100,000 ounces at Berezitovy. Combined with gold production from two underground mines in Russia, Zun-Holba and Irokinda, High River's attributable unhedged annual gold production is expected to exceed 300,000 ounces. In addition, the Company has three advanced exploration projects, the Bissa Gold Project in Burkina Faso, the world-class Prognoz Silver Project and the Chaya Nickel Project in Russia. These projects are expected to significantly add to the Company's shareholder value in the future.
Forward Looking Statements - This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, but are not limited to, any inability of High River to obtain TSX approval for the transaction, or an inability of High River to issue Common Shares from treasury. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
High River Gold Mines Ltd.
Vice President Investor Relations
(416) 360-0010 (FAX)
You can return to the Top of this page