High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

July 04, 2005 16:52 ET

High River Gold Closes Share Exchange Transactions Increasing Ownership of OJSC Buryatzoloto to 84.1%

TORONTO, ONTARIO--(CCNMatthews - July 4, 2005) - High River Gold Mines Ltd. ("High River") (TSX:HRG) today announced that over the last two months it has closed all previously announced agreements with the European Bank for Reconstruction and Development (EBRD) and four other investors to acquire their equity interests in the Russian company, OJSC Buryatzoloto ("Buryatzoloto"), in exchange for common shares of High River issued from treasury.

With the closing of these transactions, High River has issued a total of 28,107,270 common shares of the Company and increased its equity interest in Buryatzoloto from 54.1% to 84.1% (81.8% on a fully diluted basis). High River's issued capital is now 172.8 million shares. As a result, High River has achieved its objective of further consolidating its Russian operating assets.

Buryatzoloto owns and operates two underground gold mines in southern Siberia, Russia, having combined gold production of approximately 150,000 ounces per year. High River is developing and constructing two open pit gold mines, the Berezitovy Project in Russia and the Taparko-Bouroum Project in Burkina Faso, West Africa, which are scheduled to be in production in the first half of 2006. Following successful start-up of both projects, High River's total attributable annual gold production is expected to exceed 300,000 ounces by 2007.

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)
    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