High River Gold Mines Ltd.

High River Gold Mines Ltd.

October 27, 2006 09:32 ET

High River Gold Re-Prices and Extends Expiry on Warrants

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2006) - High River Gold Mines Ltd. ("High River" or "the Company)(TSX:HRG) announces that it has obtained the consent of holders of in excess of 90% of outstanding warrants, issued on October 26, 2004 (the "2004 Warrants"), to amend the terms of the 2004 Warrants. Each 2004 Warrant entitled the holder to acquire one common share at $2.35 until October 26, 2006.

The amendment, which will be effective on November 10, 2006, ten (10) business days after the date of this release, will provide that the 2004 Warrants are exercisable at a price of $2.12 per common share (rather than $2.35), and that the 2004 Warrants will expire on November 26, 2006.

Of the 16,216,217 Warrants originally issued, there are currently 14,735,760 outstanding. Any 2004 Warrants held by insiders of the Corporation will not be entitled to benefit from this change and will remain subject to the original terms of the 2004 Warrants.

As such, if all qualifying Warrantholders exercise their outstanding 2004 Warrants, it is expected that High River will receive approximately $31.2 million on or before November 26, 2006. This amendment to the terms of the existing 2004 Warrants will allow High River to raise capital to support its various project initiatives.

The transaction has received TSX conditional approval.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production in the first half of 2007, the Taparko-Bouroum Project in Burkina Faso and the Berezitovy Project in Russia. 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, with annual production from Berezitovy averaging more than 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annualized gold production rate is expected to exceed 325,000 ounces by mid-2007, establishing the Company as a mid-tier gold producer.


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