🕐24.04.12 - 00:27 Uhr
FIRE RIVER GOLD PROVIDES ADDITIONAL INFORMATION REGARDING CREDIT FACILITY
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Re: News Releases - Monday, April 23, 2012
Fire River Gold Provides Additional Information Regarding Credit
Facility
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April 23, 2012 Vancouver, Canada - Fire River Gold Corp.
and Mystery
Creek Resources Inc.
(the "Company") [TSX.V: FAU| OTCQX: FVGCF| FSE:
FWR] is pleased to provide additional information concerning the $12.75
million gold-backed credit facility (the "Credit Facility") with
Waterton Global Value, L.P.("Waterton") previously announced April 3,
2012.
As previously disclosed, the Credit Facility bears interest at a fixed
rate of 5% per annum, consists of a single drawdown on closing and is
repayable in 18 monthly instalments, beginning October 2012.
The Credit
Facility may be repaid, at Watertons option, in either cash or ounces
of gold at 78% of the then prevailing gold price.
As part of the transaction, the Company has also agreed to sell to
Waterton all of the gold and silver produced from the CIL plant until
April 30, 2014 pursuant to a gold and silver supply agreement (the
"Supply Agreement") at approximately 99% of current prices.
This
represents approximately 20% of the mined product; the larger portion
is sold under an existing agreement with Glencore Ltd.
in the form of a
gold and silver rich copper concentrate.
In connection with the Credit Facility, the Company paid Waterton a
cash structuring fee of $255,000 and issued warrants (the "Warrants")
to Waterton to purchase 8,250,000 common shares priced at $0.23575 per
common share.
The Warrants expire three years from the date of closing
and are subject to a four month hold period in accordance with
applicable Canadian securities laws.
In addition, the Company paid a
finders fee of USD $255,000 to Global Hunter Securities.
On behalf of the Board of Directors,
Richard Goodwin
President
Further Information:
Tel: +1.604.261.0580 Fax: +1.604.261.0583
Email: Website: http://www.firerivergold.com
Suite 340, 1200 West 73rd Avenue
Vancouver, British Columbia V6P 6G5
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This email should not be construed as an offer to buy or sell
securities of Fire River Gold Corp.
Cautionary Note Regarding Forward-Looking Statements:
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including with respect to the use of proceeds
of the Credit Facility with Waterton.
Forward-looking information is
based on plans and estimates of management at the date the information
is provided and certain factors and assumptions of management.
Forward
looking information is subject to a variety of risks and uncertainties
and other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information.
Factors that could cause the forward-looking information
in this news release to change or to be inaccurate include, but are not
limited to, the risks related to unsatisfactory results of due
diligence, international operations and doing business in foreign
jurisdictions, risks associated with mineral exploration and
development activities generally, the risk of commodity price and
foreign exchange rate fluctuations, and risks and uncertainties
associated with securing and maintaining necessary regulatory
approvals.
The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
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Copyright (c) 2011 FIRE RIVER GOLD CORP.
(FAU) All rights reserved.
For more information visit our website at http://www.firerivergold.com
or send mailto:
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Copyright (c) 2012 FIRE RIVER GOLD CORP.
(FAU) All rights reserved.
For more information visit our website at http://www.firerivergold.com/
or send mailto:
Message sent on Mon Apr 23, 2012 at 2:55:49 PM Pacific Time
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