High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

May 12, 2005 17:03 ET

High River Increases Equity Interest In Jilbey Gold

TORONTO, ONTARIO--(CCNMatthews - May 12, 2005) - High River Gold Mines Ltd. (TSX:HRG)("High River") today announced it has closed the previously announced share purchase agreement with European investors to acquire 4,944,500 common shares and 2,000,000 common share purchase warrants of Jilbey Gold Exploration Ltd. ("Jilbey") in exchange for the issuance of 2,382,240 High River common shares from treasury.

Of the Jilbey common share purchase warrants, 1.1 million warrants each entitle the holder to acquire one common share at a price of $0.60 until October 14, 2005, while the remaining 900,000 warrants each entitle the holder to acquire one common share at a price of $0.70 until May 12, 2006.

Following completion of the transaction, High River now holds an aggregate of 10,211,160 common shares of Jilbey, representing 29 per cent of the outstanding common shares of Jilbey and 3,875,000 common share purchase warrants. Assuming the exercise of all such warrants, High River would beneficially own or exercise control over an aggregate of 14,086,160 common shares of Jilbey, representing approximately 36 per cent of the outstanding common shares of Jilbey.

High River holds common shares and warrants in Jilbey for investment purposes only, and not for the purpose of influencing the control or direction of Jilbey. High River may, subject to market conditions and other relevant factors, make additional investments in, or dispose of securities of Jilbey in the future.

David Mosher, President and CEO of High River, is a member of the Board of Directors of Jilbey.

Contact Information

  • High River Gold Mines Ltd.
    Don Whalen
    Executive Chairman
    (416) 947 1440
    or
    High River Gold Mines Ltd.
    Laurie Gaborit
    VP Investor Relations & Corporate Secretary
    (416) 947 1440
    (416) 360 0010 (FAX)
    info@hrg.ca
    http://www.hrg.ca