Waterton takes ownership of mining assets of Fire River Gold


Canadian private equity firm Waterton Global Resource Management has taken ownership of the Nixon Fork Gold Mine and Mystery Creek Resources Inc, the principal assets of Fire River Gold Corp (TSXV: FAU). The action was the result of default by the Vancouver-based mineral exploration company on a credit agreement with Waterton. As part of the deal, Waterton also agreed to pay to Fire River approximately $250,000 in cash and other obligations. The Nixon Fork Gold Mine is located in Alaska. As reported by peHUB Canada, Waterton in April raised over US$1 billion in the final close of Waterton Global Precious Metals Fund II.

PRESS RELEASE

Fire River Announces Waterton Takes Ownership of Nixon Fork Gold Mine

VANCOUVER, July 7, 2014 /CNW/ – Fire River Gold Corp. (TSXV: FAU), (OTCQX: FVGCF), (FSE: FWR) (the “Company” or “Fire River”) announces Waterton Global Value , L.P. (“Waterton”) has taken full and unrestricted ownership of the Nixon Fork Gold Mine and Mystery Creek Resources, Inc. (“MCRI”), the U.S. corporation that owns the mine. This action is a result of the default by Fire River on the terms of the Credit Agreement with Waterton. Fire River and Waterton have agreed that Fire River will deliver all rights, debts, properties and obligations of MCRI to Waterton and Waterton will accept such as full and final satisfaction of the indebtedness due to Waterton under the Credit Agreement. As part of the final Settlement Agreement Waterton also agrees to pay to Fire River approximately C$250,000 in cash and other obligations.

Fire River intends to use the proceeds of the cash settlement to work toward lifting the Cease Trade Order that is currently in effect with a view to resuming trading on the TSX Venture Exchange.

FIRE RIVER GOLD CORP.

“Blane W. Wilson”

Blane W. Wilson
President and CEO

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release constitute “forward-looking information” as such term is used in applicable Canadian securities laws, including with respect to lifting the Cease Trade Order currently in effect and resuming trading on the TSX Venture Exchange. Forward-looking information is based on plans of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans to vary materially from those projected in such forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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

SOURCE Fire River Gold Corp.

Photo courtesy of Shutterstock

 

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!