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December 7, 2010. Vancouver, Canada --
Fire River Gold Corp. (TSX.V: FAU; OTCQX: FVGCF; FSE: FWR) (the
"Company") wishes to announce that further to its news release dated
October 21st 2010, and November 24th the Company has completed the
second tranche of its non-brokered private placement and has issued
2,783,411 units (the "Units") at a price of $0.45 per Unit for gross
proceeds of $1,252,534.95 and an aggregate amount of total issuance of
15,666,494 units for gross proceeds of $7,049,922.30. The Company
anticipates closing on the balance of the $8.5 million offering by year
end.
Each Unit consists of one common share and one-half of one
non-transferable share purchase warrant. Each whole share purchase
warrant entitles the holder to purchase one common share at a price of
$0.65 per share for 18 months, subject to an accelerated expiry
provision, such that, in the event that the Company's shares close at or
above $0.90 per share for 10 consecutive trading days on the TSX Venture
Exchange, the expiry date may be accelerated to 30 days.
All of the Common shares issued pursuant to this closing carry a legend
restricting them from trading until April 8, 2011.
The funds from the private placement will be used for the completion of
the Gold Recovery System (CIL circuit) while the increased portion of
the private placement will be used for ongoing development work on the
Nixon Fork Gold Mine in Alaska and general working capital.
About Fire River Gold Corp.
Fire River Gold Corp. is a near term production company with an
experienced technical team focused on bringing its flagship project, the
Nixon Fork Gold Mine, back into production in 2011. The Nixon Fork Gold
Mine is a fully permitted and bonded mine with past production values
averaging 1.14 opt (39 gpt). Facilities at the
Nixon Fork Gold
Mine include a 200 tpd flotation plant with a gravity gold
separation circuit and a sulphide flotation circuit. In 2008, a gold
recovery plant / CIL gold leaching circuit was purchased and partially
installed. The mine also includes a fleet of mining vehicles, a
self-contained power plant, maintenance facilities, drilling equipment,
an 85 person camp, office facilities and a 1.2 km long landing strip.
Fire River Gold
Corp is a member of the International Metals Group.
(http://www.internationalmetalsgroup.com)
On behalf of the Board of Directors, I look forward to keeping you
updated with our corporate developments. |
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"Harry Barr"
Harry Barr
President and C.E.O.
Certain information regarding the Company including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
associated with mining exploration and development, volatility of prices,
currency fluctuations, imprecision of resource estimates, environmental and
permitting risks, access to labour and services, competition from other
companies and ability to access sufficient capital. As a consequence, actual
results may differ materially from those anticipated in the forward-looking
statements. A feasibility study has not been completed and there is no certainty
the disclosed targets will be reached nor that the proposed operations will be
economically viable. The TSX Venture Exchange or its Regulation Services
Provider have not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been prepared
by management. We seek
safe harbour.
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