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July 19, 2012 Vancouver, Canada -- Fire
River Gold Corp. (the "Company") [TSXV: FAU | OTCQX: FVGCF | FSE: FWR]
is pleased to announce the appointment of Blane Wilson as President,
Chief Executive Officer and Director.
R. David Russell, the interim President and
Chief Executive Officer of the Company, shall return to his previous
position as Non-Executive Chairman.
Mr. Wilson brings extensive experience to his new position, having
worked in the mining industry for the past 25 years. His expertise
includes mining, metal processing and recovery, project management,
permitting with Federal and State agencies, exploration, and
construction. Prior to his position with Fire River Gold, Mr. Wilson
held various senior positions with Klondex Mines Ltd., Freeport McMoRan,
Minorco, Anglo Gold North American, Queenstake Resources, Yukon Nevada
Gold Corporation and Golden Eagle International. He previously spent 19
years at the Jerritt Canyon mine north of Elko, Nevada. Since 1981, the
Jerritt Canyon mine has produced over 8 million troy ounces of gold.
R. David Russell, the Company's Non-Executive Chairman reports, "The
Board takes great pleasure in Blane's appointment. With his background
in mining, metal processing and recovery, he is uniquely suited to his
new role at Fire River and we look forward to his valuable contribution
to the Company's Nixon Fork mine."
The Company is also pleased to announce that
it has entered into an agreement with BayFront Capital Partners Ltd. ("BayFront")
to act as agent in connection with a best efforts private placement
financing (the "Private Placement") of units (the "Units") of the
Company at a price to be determined in the context of the market for
gross proceeds of up to $10,000,000. Each Unit shall be comprised of one
common share (a "Common Share") and one common share purchase warrant (a
"Purchase Warrant").
The Company has been advised by Sprott Asset
Management LP, on behalf of certain of its funds, and by Waterton Global
Value that each propose to subscribe for such number of Units as would
result in them holding 19.9% of the issued and outstanding securities of
the Company following the closing of the Private Placement.
The proceeds of the Private Placement will
be used for the further development of the Company's Nixon Fork mine and
for general working capital.
All of the Common Shares and Purchase
Warrants issued pursuant to the Private Placement are subject to a
four-month hold period. Completion of the Private Placement is subject
to TSX Venture Exchange approval.
On behalf of the Board of Directors,
"R. David Russell"
Director
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this news
release constitute "forward-looking information" as such term is used in
applicable Canadian securities laws, including with respect to the use
of proceeds of the Private Placement. Forward-looking information is
based on plans and estimates of management at the date the information
is provided and certain factors and assumptions of management. Forward
looking information is subject to a variety of risks and uncertainties
and other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking information in
this news release to change or to be inaccurate include, but are not
limited to, the risks related to unsatisfactory results of due
diligence, international operations and doing business in foreign
jurisdictions, risks associated with mineral exploration and development
activities generally, the risk of commodity price and foreign exchange
rate fluctuations, and risks and uncertainties associated with securing
and maintaining necessary regulatory approvals. The Company does not
undertake to update any forward-looking information except in accordance
with applicable securities laws.
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