VANCOUVER, June 11, 2012 /PRNewswire/ - Fire River Gold Corp. L(the "Company") [TSXV: FAU| OTCQX: FVGCF| FSE: FWR] announces a non-brokered private placement to raise up to $4,000,000 by issuing up to 34,782,609 Units at a price of $0.115 per Unit. (the "Offering"). Each Unit consists of one common share and one whole share purchase warrant (a "Warrant"). Each Warrant will entitle the holder, on exercise, for a term of 24 months from the closing date, to purchase one additional common share at $0.16 per warrant share. The Company may issuer finder's fees in connection with this Offering and both the Offering and the finder's fees are subject to final acceptance by the TSX Venture Exchange.
The proceeds of the Offering will be used for working capital during the start-up phase of the new carbon-in-leach (CIL) circuit at the Company's Nixon Fork Gold Mill. The addition of CIL leaching, as the third ore recovery process (after gravity and flotation), is expected to increase gold production from 67% to 95%. To date, the start-up process has required two significant changes to the processing circuit 1) waste disposal was switched from impoundment in a dammed tailings pond to placement in a dry stack; and 2) the water balance was converted to zero discharge. In addition, the company has made subsequent improvements by increasing pump sizes, improving programming logic for the main filter controls and adjusting reagent usage. A water treatment component will also be added to the recirculating process water.
The Nixon Fork Underground Gold Mine is fully operational and a total of 34,400 tonnes of ore have been processed through the mill to date. At present, there is a broken inventory of 12,900 tonnes grading up to 20 g/t gold. This is a sufficient quantity of ore for approximately three months of processing. The broken ore inventory is expected to increase over the coming months due to additional feed provided by near surface mining operations. (See our release of May 16, 2012 for mining, processing and production figures to the end of March 2012.)
On behalf of the Board of Directors,
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. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. We seek safe harbour.
SOURCE Fire River Gold Corp.