Fire River Announces New CEO and Private Placement Financing
July 19, 2012 Vancouver, Canada --
Fire River Gold Corp. (the "Company") [TSXV: FAU | OTCQX: FVGCF | FSE: FWR] is pleased to announce the
appointment of Blane Wilson as President, Chief Executive Officer and Director.
R. David Russell, the
interim President and Chief Executive Officer of the Company, shall return to his previous position as
Mr. Wilson brings extensive experience to his new position, having worked in
the mining industry for the past 25 years. His expertise includes mining, metal processing and recovery,
project management, permitting with Federal and State agencies, exploration, and construction. Prior to
his position with Fire River Gold, Mr. Wilson held various senior positions with Klondex Mines Ltd.,
Freeport McMoRan, Minorco, Anglo Gold North American, Queenstake Resources, Yukon Nevada Gold
Corporation and Golden Eagle International. He previously spent 19 years at the Jerritt Canyon mine
north of Elko, Nevada. Since 1981, the Jerritt Canyon mine has produced over 8 million troy ounces of
R. David Russell, the Company's Non-Executive Chairman reports, "The Board takes great pleasure
in Blane's appointment. With his background in mining, metal processing and recovery, he is uniquely
suited to his new role at Fire River and we look forward to his valuable contribution to the Company's
Nixon Fork mine."
The Company is also pleased to announce that it has entered into an agreement with
BayFront Capital Partners Ltd. ("BayFront") to act as agent in connection with a best efforts private
placement financing (the "Private Placement") of units (the "Units") of the Company at a price to be
determined in the context of the market for gross proceeds of up to $10,000,000. Each Unit shall be
comprised of one common share (a "Common Share") and one common share purchase warrant (a "Purchase
The Company has been advised by Sprott Asset Management LP, on behalf of certain of its
funds, and by Waterton Global Value that each propose to subscribe for such number of Units as would
result in them holding 19.9% of the issued and outstanding securities of the Company following the
closing of the Private Placement.
The proceeds of the Private Placement will be used for the further
development of the Company's Nixon Fork mine and for general working capital.
All of the Common
Shares and Purchase Warrants issued pursuant to the Private Placement are subject to a four-month hold
period. Completion of the Private Placement is subject to TSX Venture Exchange approval.
On behalf of
the Board of Directors,
"R. David Russell"
Cautionary Note Regarding Forward-Looking
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 the
use of proceeds of the Private Placement. Forward-looking information is based on plans and estimates 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, estimates and actual results to vary materially from those projected in such
forward-looking information. Factors that could cause the forward-looking information in this news
release to change or to be inaccurate include, but are not limited to, the risks related to
unsatisfactory results of due diligence, international operations and doing business in foreign
jurisdictions, risks associated with mineral exploration and development activities generally, the risk
of commodity price and foreign exchange rate fluctuations, and risks and uncertainties associated with
securing and maintaining necessary regulatory approvals. The Company does not undertake to update any
forward-looking information except in accordance with applicable securities laws.