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Barkerville Gold Mines Ltd. (TSX VENTURE:BGM - News; FRANKFURT:IWUB - News; the
"Company") announces that it has closed the purchase of the Goldstream Mill facility, tailings pond and related
mineral leases through the acquisition (the "Acquisition") of
Bethlehem Resources (1996) Corporation ("BRC") under the terms
previously disclosed on September 23, 2010 (News Release 10-25).
It is the Company's intention, subject
to approvals, to relocate, refurbish and upgrade the Goldstream
mill facility to a location in the vicinity of Cow Mountain, near Wells, BC,
where two of the Company's NI 43-101 gold resources and proposed open-pit
deposits are located in Central British Columbia. Upon relocation, the
Company plans to upgrade the mill with an additional ball mill and a carbon-in-pulp
circuit, to an increased capacity of 2,000 tonnes
per day. The Company's Bonanza Ledge proposed open-pit mine on the adjacent Barkerville Mountain is currently in the BC Mines Act
review process. The Cariboo Gold Project,
encompassing Cow Mountain, is anticipated to re-enter the BC Environmental
Assessment Process in the 4th Quarter of 2011.
The Goldstream
Mill is a custom mineral processing plant located in the Revelstoke
Mining Division, approximately 90 km north of Revelstoke,
BC (via Hwy 23). It is a permitted facility currently on care and
maintenance, with available accommodation in the adjacent tailings pond for
possible future operations.
The Acquisition was completed pursuant
to a share purchase agreement ("Agreement") between the Company, BRC
and International Bethlehem Mining Corporation (TSXV:IBC)
("IBC") dated September 2, 2010 whereby the Company purchased all
the issued and outstanding shares of BRC from IBC. Pursuant to the Agreement,
the Company will pay IBC an aggregate purchase price of $3,300,000. The
purchase price will be satisfied by the Company paying IBC a $50,000 deposit
(paid), a $200,000 due diligence fee (paid), $250,000 on each of the 6 month
and 12 month anniversaries of the Closing Date and $550,000 on the 18 month
anniversary of the Closing Date. The Company will also pay $2,000,000 by the
issuance of $500,000 worth of shares on each of the Closing Date (issued),
the 6 month anniversary, 12 month anniversary and 18 month anniversary of the
Closing Date. The number of shares to be issued to IBC will be calculated
based on the volume weighted-average price of the Company's shares on the TSX
Venture Exchange for the 10 trading days ending on the day prior to each of
the Closing Date, 6 month anniversary, 12 month anniversary and 18 month
anniversary of the Closing Date, as applicable, subject to a floor price of
$0.92 per share. On November 16, 2010, the Closing Date, the Company issued
371,471 shares to IBC which are subject to a hold period expiring March 17,
2011.
About Barkerville
Gold Mines Ltd.
The Company continues to develop its Cariboo Gold Project in Barkerville,
B.C., which encompasses (from northwest to south east) the former producing
Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and
maintenance), Aurum Mine, Island Mountain Mine, Cariboo
Gold Quartz Mine, Bonanza Ledge (proposed mine), the Cariboo
Thompson Gold & Silver Mine and the Cariboo
Hudson Mine. The Company commenced operations in the Cariboo
District in 1994 and since that time has focused on the exploration and
development of its gold properties. Mineral tenures in the historic Cariboo goldfields encompass approximately 1,112 square
km (112,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer
gold production. Recorded gold production from the area totals more than 3.8
million ounces, including an estimated 2.64 million ounces from placer mining
and 1.23 million ounces from lode mining. The Company began gold dore production at its QR Mine in September 2010 and has
not hedged any 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 |
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