SEP 30, 2008 - 16:46 ET
High River Gold Advises That Closing of Prognoz Acquisition Transaction Has Been Extended
TORONTO, ONTARIO--(Marketwire - Sept. 30, 2008) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) advises that the closing date of the previously announced (press release dated July 31, 2008) acquisition of the remaining 50% interest in the Prognoz Silver Project ("Prognoz") has been extended to no later than October 31, 2008 upon agreement of the parties to the agreement. The transaction requires approval of the Ministry of the Russian Federation for Anti-Monopoly Policy and Support of Businesses. Required documentation has been submitted for that approval process.|
Under the agreement, High River will issue 34,100,000 common shares, representing 9.9% of the issued capital of the Company and will assume debt obligations related to past exploration expenditures on the Prognoz property totaling approximately US $16 million.
High River currently owns an indirect 50% interest in the Prognoz Silver Project, one of the largest and highest grade undeveloped silver projects in the world. Located in the Republic of Sakha (Yakutia) of the Russian Federation, the property covers 56 square kilometres and hosts over 30 high grade epithermal veins.
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)
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