June 19 2009 FAU News Release
June 19, 2009
Vancouver, Canada -- Harry Barr, President and Chief Executive Officer of Fire River Gold Corp. (the "Company" and/or the "Parent Company"), Fire River Gold Corp. and its US Subsidiary, Fire River Gold Corp. USA, announce the signing of a Mineral Property Acquisition Agreement pursuant to which the Company shall acquire a 100% interest from the Vendor in certain mineral claims referred to as the Kansas Creek Project. In consideration for its 100% interest in the Property the Parent Company will pay the Vendor an aggregate of US$40,000 in instalments and will also issue an aggregate of 250,000 common shares in instalments in the capital of the Parent Company.
The Kansas Creek Project is located in the Bonnifield District of the central Alaska Range in central-interior Alaska approximately 110km south of Fairbanks, Alaska and 70km east of Healy, Alaska. The Kansas Creek Project consists of 28 State of Alaska mining claims covering a 16.8 square kilometre area. Placer gold was discovered in the district in 1906 and approximately 80,000 ounces of gold have been recovered form alluvial deposits through 2008. The Company's objective is to explore the project for lode gold potential. A three phase program totalling over US$1.0 million has been recommended. Management is currently reviewing the data on the project with the objective of outlining a Phase I exploration program.
In addition to the above, the Company wishes to announce a non-brokered private placement of up to 10,000,000 units at a purchase price of $0.30 per unit for gross proceeds of up to $3,000,000. Each unit will consist of one common share in the capital of the Company and one-half of one non-transferable share purchase warrant, each whole warrant entitling the holder thereof to purchase one additional common share of the Company for a period of eighteen months from the date of closing at a price of $0.40 per share.
The proceeds from the private placement received from the sale of the units will be used for the acquisition of the Kansas Creek Gold Project, to aggressively acquire advanced stage gold projects in North America, and general working capital.
A finder's fee may be paid.
The foregoing is subject to regulatory approvals.
On behalf of the Board of Directors
President & CEO
The Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Disclaimer: This news release may contain certain "forward-looking statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and available at www.sedar.com or filed with the Canadian National Stock Exchange. Any forward-looking statements are not guarantees of the Company's future performance and are subject to risks and uncertainties that could cause actual results, developments, and business decisions to differ materially from those contemplated by any forward-looking statements.