NewsOn January 4, 2006, Goldrush Resources Ltd. ("Goldrush" or the "Company") announced that it had entered into a Strategic Alliance Agreement (the "Agreement") with High River Gold Mines Ltd. (HRG: TSX) ("High River") which will result in Goldrush obtaining from High River twenty-one (21) exploration permits totaling approximately 4,690 square kilometers in Burkina Faso, West Africa.
Further to the January 4 news release, the Company is pleased to announce that shareholders have exercised a total of 7 million share purchase warrants for net proceeds of C$700,000. The Company has submitted documentation to the regulatory authorities and, upon receipt of approval, the Company intends to advance these funds to initiate a Phase 1 exploration program on the Burkina Faso permits.
High River has advised the Company that it has hired additional exploration staff in Burkina Faso in preparation for the exploration program. In addition, the Company has contracted the international mineral consultancy SRK Consulting (Canada) Inc. ("SRK") to compile a National Instrument 43-101 compliant technical report on the Burkina Faso permits. SRK have sent personnel to Burkina and completed their fieldwork in early February. Management of Goldrush intend to conduct a due diligence visit to the permits in late February, 2006 at which time they will also finalize the registration of a subsidiary corporation in Burkina Faso.
As a result of the above noted warrant exercise, the number of common shares that will be issued to High River as consideration for the Burkina Faso permits will increase from 4,800,000 shares to 6,540,000 shares at a deemed price of $0.20 per share. This share issuance will maintain the 19.9% intererest in the Company held by High River. The principal amount of the Debenture to be given to High River will decrease from C$2,342,277 to C$1,994,277. At closing, the issued and outstanding share capital of the Company will be 32,856,352 common shares.