High River Gold Mines Ltd.

High River Gold Mines Ltd.

June 18, 2009 17:00 ET

High River Gold Announces Closing of Private Placement and Update on TSX Delisting Review

TORONTO, ONTARIO--(Marketwire - June 18, 2009) - High River Gold Mines Ltd. ("High River" or the "Corporation") (TSX:HRG) announced that it has closed its previously announced private placement (the "Private Placement") of 59,019,367 common shares (the "Common Shares") of the Corporation. Lybica Holding B.V., an affiliate of ZAO Severstal Resources, the mining division of OAO Severstal ("Severstal"), has purchased the Common Shares for a price of $0.18 per Common Share for total aggregate gross proceeds to High River of $10,623,486.06. As a result of the Private Placement, Severstal controls 371,790,497 Common Shares representing approximately 57.3% of the outstanding Common Shares.

Proceeds of the Private Placement will be used for repayment of the approximately US$5.2 million short term loan from Severstal to OJSC Buryatzoloto ("Buryatzoloto"), the Corporation's 84.94%-owned subsidiary, which Buryatzoloto required for a US$10 million debt repayment on June 12, 2009, and for general corporate purposes.

The Corporation has also been advised by the Toronto Stock Exchange (the "TSX") that its delisting review period has been extended to August 17, 2009 due to the pending take-over bid by Severstal and that in the absence of such take-over bid, the TSX would have determined to delist the Corporation's securities due to its current financial condition. If the take-over bid is not successful or is otherwise terminated, or the take-over bid does not proceed on the expected timetable, the TSX reserves the right to immediately call a meeting of the Listings Committee to consider abridging the extension and whether to suspend trading in and delist the securities of the Corporation.

About High River

High River is a gold company with interests in producing mines and advanced exploration projects in Burkina Faso and Russia.

Contact Information

  • High River Gold Mines Ltd.
    Dan Hrushewsky
    Vice President Investor Relations
    (416) 947 1440
    (416) 360 0010 (FAX)