Barkerville Gold Mines Ltd. (TSX
VENTURE:BGM - News; FRANKFURT:IWUB - News; the
"Company") announces today that it has completed its private
placement financing previously announced on November 15, 2010, with certain
institutional and accredited buyers who purchased an aggregate of 3,846,154
common shares of the Company at a price of $1.30 per common share for gross
proceeds of $5,000,000 (all figures $CDN).
The proceeds of the private placement
will be used, subject to approvals under the Mines Act (British Columbia), to
commence mining operations at the Bonanza Ledge proposed open pit mine,
further development and drilling of the Company's assets and for general
working capital purposes.
D&D Securities Inc. acted as agent
with respect to the private placement and received a 5% commission by the
issuance of 192,308 common shares and 192,308 share purchase warrants. Each
share purchase warrant entitles the holder to purchase one common share at a
price of $1.30 per share exercisable on or before November 24, 2011. The Company
also paid in respect of the subscriptions by U.S. investors a cash fee of
1.5% being $33,182.37 to MGI Securities (USA) Inc. to effect sales to such
U.S. institutional investors. All of the securities issued are subject to a
hold period expiring March 25, 2011.
This press release does not constitute
an offer to sell, or a solicitation of an offer to buy, nor shall there be
any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdictions. These securities have not
been registered under the United States Securities Act of 1933 or any state
securities law, and they may not be offered or sold in the United States
unless an exemption form registration is available. This press release does
not constitute an offer to sell or a solicitation of an offer to buy
securities in the United States.
About Barkerville Gold Mines Ltd.
The Company has been focused on
exploration and development of gold projects in the Cariboo Mining District
in central British Columbia since 1994. The Company's mineral tenures now
cover over 1,225 square kilometers of mineral tenures encompassing 7 past
producing hard rock mines and three NI43-101 gold deposits, including the QR
Mine & Mill. The QR Mine & Mill was acquired in February 2010 and
includes a 900 tonne/day gold milling facility and a permitted gold mine
located approximately 110 kilometers by highway and all-weather road from the
Barkerville Gold Camp. Mining operations commenced at QR in February and the
Company began pouring dore gold in September of this year. In November 2010,
the Company acquired a second permitted mill currently on care and
maintenance in Revelstoke, B.C. and plans to relocate it to the gold deposits
in the Barkerville Gold Camp near Wells, B.C. and upgrade it to a
2,000-tonne/day facility subject to all approvals. The Company has not hedged
any of its future gold production.
On behalf of the Board of Directors
J. Frank Callaghan, President and CEO
This News Release contains
forward-looking statements. Forward-looking statements are statements which
relate to future events and conditions and therefore involve inherent risks
and uncertainties. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking
statements. While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our industry, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Except as required
by applicable law, the Company does not intend to update any of the forward-looking
statements to conform these statements to actual results. All phases of the
Company's operations are subject to environmental regulation and governmental
approval and permits and there can be no assurance that the Company will
obtain all the requisite permits for future development. Mining is an
inherently risky business with large capital expenditures and cyclical metals
markets.
Neither the 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.
Contact:
J. Frank Callaghan
Barkerville Gold Mines Ltd.
President and CEO
604 669-6463 or Toll Free: 1-800 663-9688
604 669-3041 (FAX)
www.barkervillegold.com |