Barkerville announces closing
of $24,351,424 under Equity Financing
Vancouver, BC - Barkerville Gold Mines Ltd. (TSXV:BGM) (the "Company") announces that it has raised
a further $5,997,788.43 together with the $18,353,636.05 raised in its
previously announced financing through D&D Securities Inc. and M Partners
Inc. of up to $20,000,000 in units with an additional green shoe option of up
to $5,000,000 in units as disclosed on December 5, 2011 as amended December 16,
2011. The Company issued 7,056,218 units at a price of $0.85 per unit. Each
unit consists of one common share and one half of one common share purchase
warrant. Each whole warrant is exercisable into one common share at a price of
$1.10 per share until July 17, 2013 and July 20, 2013 respectively. In
connection with the financing the Company will pay to the Agents a cash commission
of up to 7% of the gross proceeds raised and issue broker's warrants to
purchase common shares in an amount of up to 10% of the aggregate number of
shares issued, exercisable until July 20, 2013 at $0.85 per share. All the
securities issued are subject to a four month hold period expiring on May 17,
2012 and May 20, 2012 respectively.
The Company has used the net proceeds: (i) to
purchase Mosquito Consolidated Gold Mines Limited's 3% NSR on the Cariboo Gold Quartz Property, Island Mountain Property and Mosquito
Creek Property and acquire all their residual property interests in the Cariboo Gold Quartz Property; (ii) to retire its
contractual obligations with Procon Mining
Partnership; and (iii) to pay certain outstanding liabilities and to provide
working capital.
The Company is in the process of seeking advisors and additional directors with
the necessary experience to compliment its management
team and bring additional managerial, technical and operational experience to
develop its properties, as it prepares for the transition from a junior mineral
exploration company to an established gold producer in British Columbia.
As part of the Equity Financing Standard Drilling & Engineering Ltd. sold
1,000,000 shares of the Company through the facilities of the TSX Venture
Exchange at a price of $0.85 per share and used the proceeds from the sale
towards its subscription for 2,764,706 units under the private placement. The
company shares a common director with Barkerville and
therefore the subscription constitutes a "related party transaction"
(MI 61-101) as, the Company is exempt from the requirement to obtain an
independent valuation and minority shareholder approval.
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 now cover over
117,691.14 hectares, encompassing seven past producing hard rock mines and
three NI 43-101 gold deposits, including the QR Mine & Mill. 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
kilometers by highway and all-weather road from the Barkerville
Gold Camp. Mining operations commenced at QR in the first quarter of fiscal
2011 and the Company began pouring dor� gold in
September 2010. In November 2010, the Company acquired a second permitted mill
currently on care and maintenance in Revelstoke, B.C.
for relocation to the Barkerville Gold Camp near
Wells, B.C. and upgrade to a 3,000-tonne/day facility subject to government
approvals. In November 2010 the Company and the Lhtako
Dene First Nation also signed a Project Agreement in relation to its Bonanza
Ledge and Cariboo Gold Projects. The Company has not
hedged any of its future gold production.
The technical information in this News Release has been reviewed and approved
by Chief Geologist Jim Yin, PhD, P.Geo, a qualified
person as defined in National Instrument 43-101.
On behalf of the Board of Directors
"J. Frank
Callaghan"