|It is almost laughable that yet another vulture (besides Sprott) has decided to take the carrion plunge on a water filled hole in Alaska by the name of Fire River Gold.|
"Mr. Richard Goodwin reports|
FIRE RIVER GOLD PROVIDES ADDITIONAL INFORMATION REGARDING CREDIT FACILITY
Fire River Gold Corp. and Mystery Creek Resources Inc. are providing additional information concerning the $12.75-million gold-backed credit facility with Waterton Global Value LP previously announced April 4, 2012.
As previously disclosed, the credit facility bears interest at a fixed rate of 5 per cent per year, consists of a single drawdown on closing and is repayable in 18 monthly instalments, beginning October, 2012. The credit facility may be repaid, at Waterton's option, in either cash or ounces of gold at 78 per cent of the then prevailing gold price.
As part of the transaction, the company has also agreed to sell to Waterton all of the gold and silver produced from the CIL plant until April 30, 2014, pursuant to a gold and silver supply agreement at approximately 99 per cent of current prices. This represents approximately 20 per cent of the mined product. The larger portion is sold under an existing agreement with Glencore Ltd. in the form of a gold-and-silver-rich copper concentrate.
In connection with the credit facility, the company paid Waterton a cash structuring fee of $255,000 and issued warrants to Waterton to purchase 8.25 million common shares priced at 23.575 cents per common share. The warrants expire three years from the date of closing and are subject to a four-month hold period in accordance with applicable Canadian securities laws. In addition, the company paid a finder's fee of $255,000 (U.S.) to Global Hunter Securities.