TORONTO, ONTARIO--(Marketwire
- May 22, 2009) - The Board of High River Gold Mines Ltd. (TSX:HRG) ("High River" or the
"Company") notes the recent increase in its stock price and
wishes to provide an update on recent events.
High River has previously updated the market with respect to certain
operating difficulties, current liquidity and loan maturities that
include the obligation to repay approximately US$15 MM to its lenders
in May and June 2009 as well as approximately US$27 MM in obligations
to Standard Bank now assigned to OAO Severstal
("Severstal") which are currently
in default.
Following an independent analysis by High River of its liquidity
position and a review of financing and strategic alternatives, on May
19, 2009 Severstal indicated to the Board of
High River, by way of non-binding expression of interest, that it
proposes to make a cash offer of C$0.18 per share to minority
shareholders in High River.
There can be no guarantee that such an offer will ultimately be made at
this stage. The Board of High River has formed a special committee
consisting of independent directors to oversee discussions with Severstal and evaluate any proposal that may be
made.
Severstal has already provided significant
financial support to High River (including the November 2008 private
placement of US$45 MM and the April 2009 reassignment of
loans-in-default totalling US$27 MM), and absent further support as
suggested above, the Board of High River believes that outlook for the
Company remains uncertain.
A further announcement will be made as soon as is appropriate.
About High River
High River is a gold company with interests in producing mines and
advanced exploration projects in Burkina Faso and Russia.
FORWARD LOOKING STATEMENTS
This release and subsequent oral statements made by and on behalf of
the Company may contain forward-looking statements. Wherever possible,
words such as "intends", "expects",
"scheduled", "estimates", "anticipates",
"believes", and similar expressions or statements that
certain actions, events or results "may", "could",
"would", "might" or "will" be taken,
occur or be achieved, have been used to identify these forward-looking
statements. Although the forward-looking statements contained in this
release reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, High River cannot be certain
that actual results will be consistent with these forward-looking
statements. A number of factors could cause events and achievements to
differ materially from the results expressed or implied in the
forward-looking statements. These factors should be considered
carefully and prospective investors should not place undue reliance on
the forward-looking statements. Forward-looking statements necessarily
involve significant known and unknown risks, assumptions and
uncertainties that may cause High River's actual results, event,
prospects and opportunities to differ materially from those expressed
or implied by such forward-looking statements. Although High River has
attempted to identify important risks and factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors and
risks that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that the
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, prospective investors should not place
undue reliance on forward-looking statements. Any forward-looking
statements are made as of the date of this release, and High River
assumes no obligation to update or revise them to reflect new events or
circumstances, unless otherwise required by law.
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