High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

August 06, 2009 12:13 ET

High River Gold Announces TSX Ends Delisting Review

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) is pleased to announce that the Toronto Stock Exchange (the "TSX") has determined that High River satisfies the TSX's continued listing requirements and is lifting the delisting review.

As previously disclosed, the Company continues to be in breach of certain covenants under the loan agreement ("RGI Agreement") between Royal Gold Inc. ("RGI") and High River's subsidiary, Somita SA, and the loan agreements (the "Severstal Agreements") between OAO Severstal ("Severstal") and High River and Somita SA (which were previously held by Standard Bank plc and assigned to Severstal on April 20, 2009). The default under the RGI Agreement relates to operational issues in connection with the inability of Somita to satisfy the "Completion Test" (as such term is defined in the RGI Agreement) and these issues are being addressed by the Company. The defaults under the Severstal Agreements included breaches of certain financial covenants which have not been waived but are in compliance now and a cross-default under the RGI Agreement. The Company is current on all scheduled payments on the current portion of long-term debt facilities, and in particular, has made all payments of principal and interest under the RGI Agreement and the Severstal Agreements as they come due. Although RGI and Severstal have not yet made any demands for payment or taken any action, they continue to reserve their rights to do so. Severstal has advised High River that, following completion of its subsidiary's take-over bid for the common shares of High River, it will seek to restructure the Severstal Agreements with a view to retirement of the loans.

About High River

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

FORWARD LOOKING STATEMENTS

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

Contact Information

  • High River Gold Mines Ltd.
    Dan Hrushewsky
    Vice President Investor Relations
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca