Remember this NR
Fire River Gold Corp. closes credit facility with Sprott Resource Lending
Partnership
December 12, 2011 Vancouver, Canada - Fire River Gold Corp. [TSXV: FAU| OTCQX: FVGCF| FSE:
FWR] (the “Company”) is pleased to announce that it has closed the previously announced secured credit
facility (the “Credit Facility”) with Sprott Resource Lending Partnership (”Sprott”).
The Company received the first drawdown of $1 million on November 15, 2011 and the second and final
drawdown of $6.5 million on December 9, 2011. The funds drawn under the Credit Facility are secured
against all of the assets of the Company and its subsidiaries. Funds drawn under the Credit Facility are
repayable on or before November 15, 2012 and accrue interest at a fixed rate of 12% per annum. Funds
borrowed under the Credit Facility will be used exclusively for the development of the Nixon Fork Mine
and working capital purposes of the Company and its subsidiary, Mystery Creek Resources, Inc.
In connection with the Credit Facility, a structuring fee of $75,000 has been paid to Sprott in cash. Pursuant
to the terms of the Credit Facility, a non-refundable share bonus payment in the amount of $750,000 (the
“Bonus Fee”) being 10% of the Credit Facility, has been paid to Sprott in common shares of the Company.
3,260,870 common shares were issued from treasury to Sprott on December 9, 2011, and carry a legend
restricting them from trading until April 10, 2012.
On behalf of the Board of Directors,
Richard Goodwin
What happens if they can't pay back the load on November 15th???