High River Gold Mines Ltd.

High River Gold Mines Ltd.

April 20, 2007 15:57 ET

High River Gold Arranges a US $10 Million Revolving Credit Facility

TORONTO, ONTARIO--(CCNMatthews - April 20, 2007) - High River Gold Mines Ltd. ("High River") (TSX:HRG) is pleased to announce that it has completed a US $10 million revolving credit facility (the "Facility") with Standard Bank Plc ("Standard Bank") on behalf of its Burkina Faso subsidiary company, Societe des Mines de Taparko ("Somita"). The Facility matures on April 19, 2008, and is extendable for two additional one-year periods. Interest is payable at Libor plus a margin of 3.5%. High River has issued a corporate guarantee to Standard Bank in support of the Facility. Somita will utilize the Facility for operating working capital requirements of the Taparko-Bouroum gold development project, which is scheduled to begin production in June. The Facility does not require any gold hedging.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production in 2007, the Taparko-Bouroum Project in Burkina Faso (June) and the Berezitovy Project in Russia (August/September). Annual gold production from Taparko-Bouroum is planned at 100,000 ounces in year one increasing to over 140,000 ounces in the third year of operation, and annual production from Berezitovy will exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable gold production is expected to exceed 200,000 ounces in 2007, and 300,000 ounces in 2008. In addition, the Company has two advanced exploration projects, the Bissa Gold Project in Burkina Faso and the world-class Prognoz Silver Project in Russia. These projects are expected to significantly add to the Company's production profile in the future.

About Standard Bank

The Standard Bank Group Limited is Africa's leading banking and financial services group, with assets of approximately US$139 billion and over 42,000 employees in 39 countries across the globe. It leverages its pioneering heritage and experience of resource banking and emerging markets in Africa to offer banking and financial services in developing economies throughout the world, and is committed to making a real difference wherever it operates.

Standard Bank is authorized and regulated by the Financial Services Authority. It is a member of the London Stock Exchange, the London Bullion Market Association, the London Metal Exchange, the London Platinum and Palladium Market and the New York Mercantile Exchange (COMEX Division).

Forward Looking Statements - This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected. Risk and uncertainties about the Company's business are more fully discussed in the Management's Discussion and Analysis published in the Company's Annual Report and in the Annual Information Form.

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