VANCOUVER, June 29, 2012 /CNW/ - Fire River Gold Corp. (TSXV: FAU) (OTCQX: FVGCF) (FSE: FWR) (the "Company") today announced it has entered into an amendment agreement dated June
22, 2012 (the "Amendment Agreement") with Waterton Global Value, L.P.
("Waterton") pursuant to which it has amended the terms of the Senior
Secured Gold Stream Credit Agreement dated March 30, 2012 (the "Credit
Facility") between the Company and Waterton. Under the terms of the
Amendment Agreement, Waterton has agreed to increase the Credit
Facility by making available to the Company, $1,500,000 (the
"Additional Facility") as a single advance and non-revolving loan. The
principal amount of the Additional Facility is to be repaid by the
Company on the earlier of (i) the date on which the Company closes its
next equity offering of its common shares, and (ii) August 1, 2012.
As part of the Additional Facility, the Company paid Waterton a two
percent (2%) cash structuring fee and will issue 2,250,000 share
purchase warrants ("Warrants") to Waterton, at an exercise price of
$0.10 per Warrant and the Warrants will expire three years from the
date of issue. The Warrants are subject to a four month hold period in
accordance with applicable Canadian securities laws. All other terms of
the Credit Facility as disclosed in press releases dated April 4, 2012
and April 23, 2012 remain in effect.
The foregoing is subject to TSX Venture Exchange approval.
On behalf of the board of directors.
"R. David Russell"
R. David Russell,
Interim President and CEO
Certain information regarding the Company including management's
assessment of future plans and operations, may constitute
forward-looking statements under applicable securities laws and
necessarily involve risks associated with mining exploration and
development, volatility of prices, currency fluctuations, imprecision
of resource estimates, environmental and permitting risks, access to
labour and services, competition from other companies and ability to
access sufficient capital. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements. A
feasibility study has not been completed and there is no certainty the
disclosed targets will be reached nor that the proposed operations will
be economically viable. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release. We seek safe harbour.
SOURCE Fire River Gold Corp.
For further information:
Tel: 604 261 0580
Email: email@example.com or visit www.firerivergold.com
Suite 340-1200 West 73rd Ave, Vancouver, B.C., Canada V6P 6G5