FIRE RIVER ANNOUNCES CLOSING OF SECOND TRANCHE OF BROKERED FINANCING FOR
GROSS PROCEEDS OF $1.08 MILLION
Fire River Gold Corp. (the "Company") [TSXV:
FAU | OTCQX: FVGCF | FSE: FWR] announces
that it has closed the second tranche of its previously announced brokered
private placement financing (the "Offering"). The Company issued
16,602,709 Units at a price of $0.065 per Unit for aggregate gross proceeds of
$1,079,176.09. Each Unit consists of one common share ("Common
Share") and one common share purchase warrant (a "Warrant").
Each Warrant entitles the purchaser to subscribe for one additional common
share (a "Warrant Share") at an exercise price $0.10 per Warrant
Share for a period of five years.
BayFront Capital Partners Ltd. ("BayFront")
acted as agent in connection with the Offering. The Company paid BayFront, and the selling group, an aggregate of $86,334.09
and issued 1,328,216 compensation options (each, a "Compensation
Option") as commission in connection with the Offering. Each Compensation
Option is exercisable into one Unit at a price of $0.065 for a period of five
years.
The use of proceeds of the Offering will be used for
the further development of the Company's Nixon Fork mine and for working
capital and general working capital.
All Common Shares, Warrants, and Compensation Options,
carry a four-month hold period restricting them from trading until January 1,
2013.
About Fire River Gold
Fire River Gold Corp. is Alaska's newest gold
producer, with a projected 30,000 ounces per year of gold to be produced on its
wholly owned Nixon Fork Gold Mine located in the resource rich Tintina Gold Belt. Operations started in July 2011, with a
near term production target of 30,000 oz/Au by end of
year 2012, projecting an increase to 40,000 oz/Au per
year in 2013, ramping up to a projected 50,000 ounces in 2014. This year-round
mine program is producing both concentrate and dor�
bars. Fire River Gold has fantastic growth potential, with excellent targets
identified to grow its current high grade resource. Coupled with a strong
management team and board of directors, Fire River has a bright future ahead.