High River Gold Mines Ltd.

High River Gold Mines Ltd.

July 18, 2007 16:32 ET

High River Gold Closes Cdn $18 Million Equity Financing

TORONTO, ONTARIO--(Marketwire - July 18, 2007) - High River Gold Mines Ltd. (TSX:HRG) ("High River") is pleased to announce that it has closed the previously announced non-brokered private placement financing consisting of 7,000,000 units (the "Units") at a price of Cdn. $2.60 per unit for gross proceeds of Cdn. $18,200,000. Each Unit consists of one common share and one-half common share purchase warrant. Each whole warrant will be exercisable at a price of Cdn. $3.25 for a period of 24 months from the closing date. The warrants are subject to forced conversion after July 18, 2008 if High River's share price closes for twenty consecutive days at Cdn. $4.25 per share or above.

Proceeds from the financing will be used by the Company for general corporate purposes.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production this year, the Taparko-Bouroum Project in Burkina Faso (July) and the Berezitovy Project in Russia (August/September). Annual gold production from Taparko-Bouroum is planned at 100,000 ounces for the first 12 months increasing to over 140,000 ounces in the third year of operation, and annual production from Berezitovy is expected to exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable unhedged 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.

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.
    Don Whalen
    Executive Chairman
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: dwhalen@hrg.ca
    Website: www.hrg.ca