River issues more rights

A deal between River Gold Mines (RIV-T) and certain noteholders extends the maturity date for half of the company’s 9% promissory notes until Oct. 8, 2003.

The noteholders, representing $1 million worth of principal, received 600 warrants for $1,000 worth of principal held in return for the 2-year extension. A warrant entitles the holder to buy a share at $1.40 before the period expires.

The deal follows a similar one in early September, in which 5.2 million units were issued to shareholders at $1.05 apiece. Here, a unit consists of a share and half a warrant that can be exercised for another share over the next year, at $1.35.

Some of the proceeds are being used to complete shaft-sinking at the River Gold mine, near Wawa, Ont. The shaft, which is scheduled to be operational in February, is expected to reduce hauling costs signficantly.

At last report, reserves at the mine stood at 1.2 million tonnes grading 10.14 grams gold per tonne. The deposit extends to 400 metres below surface, except in the shaft area, where it deepens to 460 metres.