VANCOUVER, Aug. 9, 2012 /CNW/ - Fire River Gold Corp. ("Fire River" or the "Company") has closed the first tranche of its previously announced brokered private placement financing (the "Offering"). Pursuant to the Offering, the Company issued 88,417,458 Units at a price of $0.065 per Unit for aggregate gross proceeds of $5,747,134.77. 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.
BayFront Capital Partners Ltd. acted as agent in connection with the Offering. The Company paid $137,040.80 and issued 2,108,320 compensation options (each, a "Compensation Option") as commission in connection with the Offering, other than in respect of subscriptions received from certain president's list subscribers. Each Compensation Option is exercisable into one Unit at a price of $0.065 for a period of five years.
The use of proceeds of the Offering will be used for the further development of the Company's Nixon Fork mine, satisfaction of an outstanding debt and for working capital and general working capital.
All Common Shares, Warrants, and Compensation Options, carry a four-month hold period restricting them from trading until December 10, 2012.
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.
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. This news release contains forward-looking statements regarding the business and operations of Fire River Gold. In particular, statements regarding use of proceeds and production targets in the upcoming years are forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Fire River's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Fire River with securities regulators. Fire River expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
SOURCE: Fire River Gold Corp.
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