/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
VANCOUVER, Sept. 20, 2012 /CNW/ - Fire River Gold Corp. (the "Company") (TSXV: FAU) (OTCQX: FVGCF) (FSE: FWR) announces that it has closed the third and final tranche of its
previously announced brokered private placement financing with BayFront
Capital Partners Ltd. ("BayFront") as well as its previously announced
brokered private placement financing with Sunel Securities Inc.
("Sunel") (the "Offerings"). The Company issued an aggregate of
108,694,492 Units at a price of $0.065 per Unit for aggregate gross
proceeds of $7,065,141.98. Each Unit consists of one common share
("Common Share") and one common share purchase warrant (a "Warrant").
Each Warrant entitles the purchaser to subscribe for one additional
common share (a "Warrant Share") at an exercise price $0.10 per Warrant
Share for a period of five years.
The Company paid BayFront and Sunel who acted as lead Agents for each
Offering, respectively, and certain finders assisting with the
Offerings, an aggregate of $409,864.09 and issued 6,305,603
compensation options (each, a "Compensation Option") as commission in
connection with the Offerings. Each Compensation Option is
exercisable into one Unit at a price of $0.065 for a period of five
The proceeds from the Offerings will be used for the further development
of the Company's Nixon Fork mine, satisfaction of outstanding debt and
general working capital.
All Common Shares, Warrants, and Compensation Options, carry a
four-month hold period restricting them from trading until January 20,
About Fire River Gold
Fire River Gold Corp. is Alaska's newest gold producer, with a projected
30,000 ounces per year of gold to be produced on its wholly owned Nixon
Fork Gold Mine located in the resource rich Tintina Gold Belt.
Operations started in July 2011, with a near term production target of
30,000 oz/Au by end of year 2012, projecting an increase to 40,000
oz/Au per year in 2013, ramping up to a projected 50,000 ounces in
2014. This year-round mine program is producing both concentrate and
doré bars. Fire River Gold has fantastic growth potential, with
excellent targets identified to grow its current high grade resource.
Coupled with a strong management team and board of directors, Fire
River has a bright future ahead.
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 Private Placement. 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.
SOURCE: Fire River Gold Corp.
For further information:
Tel: 604 261 0580
Email:firstname.lastname@example.org or visit www.firerivergold.com
Suite 340-1200 West 73rd Ave, Vancouver, B.C., Canada V6P 6G5