Aug 12, 2013
Barkerville Gold Mines Ltd. Arranges Short Term Loan
Vancouver, BC -- Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") announces that it has entered into a term sheet for a short term loan (the "Loan") with Sprott Resource Lending Corp. ("Sprott"). The principal amount of the Loan is $1,500,000, is due on or about December 31, 2013 and bears interest at a rate of 12% per annum, payable monthly or compounded if not paid in cash.
As part of the Loan, Sprott will receive a bonus payment equal to $200,000 payable in units consisting of one share and one warrant (the "Bonus Units"). The Bonus Units will be issued at a deemed price equal to a 10% discount to the volume weighted average price ("VWAP") for the five trading day period commencing five trading days after the Company's shares are reinstated for trading on the TSX Venture Exchange (the "Exchange"). The warrants will have a one year term and will have an exercise price equal to the five day VWAP. The Bonus Units will be issued on the later of closing and 12 days following the reinstatement of the Company's shares for trading.
For the VWAP pricing mechanism and the terms of the Bonus Units, the Exchange requires that:
- the deemed share price must be equal to or greater than $0.05;
- the warrant exercise price must be equal to or greater than $0.10; and
- the Company, Sprott and their associates and affiliates must not trade in the marketplace during the 5 day trading period used to calculate the VWAP.
The Loan is subject to final Exchange approval.
As reported in News Release 13-12, dated August 9, 2013, Barkerville is in the process of making application to the Exchange to reinstate its common shares for trading on the Exchange (the "Reinstatement Application"). In connection with this process, the Company is exploring further financing options, which may include such options as debt financing, forward gold sales or a gold streaming agreement. Barkerville will report on the progress of the Reinstatement Application and further financing options as information becomes available. Frank Callaghan, CEO, commented: "We want to thank our shareholders, employees, consultants and other stakeholders for their support throughout the past months and are looking forward to seeing Barkerville's shares come back to trade as soon as possible."
"J. Frank Callaghan"
J. Frank Callaghan
President and CEO
About Barkerville Gold Mines Ltd.
Since the mid-1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures cover 1,164 km2 along a strike length of 60 km and approximate width of 20 km, including the Cariboo Gold Project, the Bonanza Ledge Gold Project, the Barkerville Mountain and Island Mountain exploration targets and seven past producing hard rock mines. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 km by highway and all-weather road from the Barkerville Gold Camp. The Company began pouring dor� gold in September 2010, continued until December 2011, and resumed in January 2013. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. The Company has completed significant drilling and exploration programs and, together with the historical data, is compiling all information to determine the geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects. This news release has been prepared on behalf of the Board of Directors of the Company which takes full responsibility for its contents.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSX Venture Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
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.
- Associated File: http://www.barkervillegold.com/i/pdf/BGM-NR-13-13-Loan-August-12-2013.pdf
- 42 KB in size, approx. 9 seconds to download at 56.6Kbps
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