High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

July 06, 2005 13:21 ET

High River Gold Announces Increase to Bought Deal

TORONTO, ONTARIO--(CCNMatthews - July 6, 2005) -

NOT FOR DISTRIBUTION TO U. S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

High River Gold Mines Ltd. (TSX:HRG) ("High River") is pleased to announce that it has reached agreement with the underwriters for its bought deal announced early today to increase the total size of the offering to $30 million. The underwriters, Sprott Securities Inc, Dundee Securities Corporation and Paradigm Capital Inc., have now agreed to purchase 16,000,000 units (the "Units") (instead of 8,000,000) on a bought deal basis, at a price of Cdn. $1.25 per Unit for gross proceeds to High River of Cdn. $20 million. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable at a price of Cdn. $1.60 for a period of 18 months from the closing date. The Underwriters will also have the option to purchase up to an additional 8,000,000 Units at the Issue Price (the "Underwriters' Option") at any time prior to the Closing Date. High River will file a short form prospectus to qualify these securities. The offering is scheduled to close on or about July 27, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Proceeds of the offering will be used by the Company for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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
    www.hrg.ca