March 18, 2011. Vancouver, Canada --
Fire River Gold Corp. (TSX.V: FAU; OTCQX: FVGCF; FSE: FWR) (the
"Company") is pleased to announce that further to its news release
dated March 4th 2011, the Company has completed the first tranche of
its non-brokered private placement and has issued 4,425,000 units
(the "Units") at a price of $0.50 per Unit for gross proceeds of
Each unit will consist 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 of the
Company at a price of $0.70 per share for 18 months, subject to
accelerated expiry, such expiry may be accelerated to 30 days in the
event the Company's shares have closed at or above a price of $0.90
per share for 10 consecutive trading days.
All common shares issued in connection with the units are subject to
regulatory hold periods, restricting them from trading until July
18, 2011. In connection with the closing of the financing, the
Company has paid finder's fees of $7,250. The foregoing is subject
to final regulatory approval.
The proceeds from the private placement will be used primarily to
supplement the Company's working capital budget by covering the
operating costs (estimated at $2.5 M per month) as the mine ramps up
to full production, to evaluate and expand the exploration drilling
program, and to review potential acquisitions.
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 permitted and bonded mine which include a ~200
tpd processing plant with a gravity gold circuit, sulphide flotation
circuit and a gold recovery system (CIL circuit) that is scheduled
to be completed by Summer 2011. The mine also includes a fleet of
surface & underground 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.
A 28,000 metre exploration and ore definition drill program is in
progress to expand the current resources and support the detailed
Fire River Gold Corp is a member of the International Metals Group.
On behalf of the Board of Directors, I look
forward to keeping you updated with our corporate developments.
President and COO
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