High River Provides an Update on the Bankruptcy Procedures of Prognoz Silver LLC
02/18/2011 07:56 AM ET
TORONTO, ONTARIO, Feb 18, 2011 (MARKETWIRE via COMTEX News Network)-- High River Gold Mines Ltd. ("High River" or the "Company") (TSX:
HRG) was informed that Prognoz Silver LLC ("Prognoz Silver") repaid
part of an outstanding debt due under the contract for exploration
work on the Prognoz silver project to OJSC Buryatzoloto
("Buryatzoloto"). High River holds a 50% indirect interest in Prognoz
Silver, which operates the Prognoz silver project in the Republic of
Sakha (Yakutia), Russia. The repaid amount was approximately US$18
million. Prognoz Silver's debt originated from the inability of its
shareholders, other than High River, to finance their share of
expenditures at the Prognoz silver project.
Following the repayment, the Arbitration Court of the City of Moscow
dismissed Buryatzoloto's application for official bankruptcy
procedures for Prognoz Silver. However, the initial application to
put Prognoz Silver into bankruptcy, which was filed by Prognoz Silver
itself, is still under review by the court and has not yet been
decided. Buryatzoloto is considering the circumstances of the
repayment and evaluating its next steps.
About High River
High River is an unhedged gold company with interests in producing
mines and advanced exploration projects in Russia and Burkina Faso.
Two underground mines, Zun-Holba and Irokinda, are situated in the
Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in
Russia and Taparko-Bouroum in Burkina Faso, are also in production.
Finally, High River has two advanced exploration projects with NI
43-101 compliant resource estimates, the Bissa gold project in
Burkina Faso and 50% interest in the Prognoz silver project in
Russia.
Contacts:
High River Gold Mines Ltd.
Konstantin Sobolevskiy
CEO
011 7 495 981 0910 ext. 6676
info@hrg.ca
www.hrg.ca
SOURCE: High River Gold Mines Ltd.
mailto:info@hrg.ca
https://www.hrg.ca
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