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Barksdale Resources Corp V.BRO

Alternate Symbol(s):  BRKCF

Barksdale Resources Corp. is a base metal exploration company. The Company is focused on the acquisition, exploration and advancement of highly prospective base metal projects in North America. The Company is advancing the Sunnyside copper-zinc-lead-silver and San Antonio copper projects, both of which are in the Patagonia mining district of southern Arizona, as well as the San Javier copper-gold project in central Sonora, Mexico. Its other projects include Four Metals project, Goat Canyon porphyry copper-molybdenum exploration project, and Canelo project. Sunnyside project covers approximately 21 square kilometers. The San Antonio project is in the Patagonia Mountains of southern Arizona and covers over 25.5 square kilometers. Four Metals project is an approximately 760-acre property. Goat Canyon project consists of 430 federal mining claims that cover over 8,650 acres in Santa Cruz County, Arizona. The Canelo project consists of about 433 federal mining claims that cover 8,700 acres.


TSXV:BRO - Post by User

Comment by gameofboneson May 16, 2023 6:54am
193 Views
Post# 35449713

RE:Price moving UP

RE:Price moving UP$25/share is not feasible ($2B ÷ 80M shares). Even if Sunnyside is bought at this very moment for the same price that South 32 paid for Taylor/Hermosa, under the agreement, you would be looking at $16-17/share as BRO doesnt have 100% interest in Sunnyside.

BRO has an option for 67.5% interest of Sunnyside from Regal, the Sunnyside property owner. Right now BRO has the option for a 51% interest but hasnt earned into Year 1 of the agreement because permits have not been issued. Year 3 & 4 is when BRO can earn up to 67.5% interest after issuing shares & making cash payments to Regal. Then complete $10M+ by Year 4 in expenditures. There is also an Acceleration Payment Clause (stated in the MD&A and probably worth a lot of millions to Regal) attached to Sunnyside in the event theres a change of control in BRO or a transfer of interest to another party ie: BRO sells the option to South 32 or another party all the way until Year 4 of the agreement.

So, $2B x 0.675 - $$$Millions for Acceleration Clause ÷ 80M Shares = $16-17/share. Keep in mind, South 32 overpaid for Taylor/Hermosa by at least twice when you look at the technicals and ore deposit locations ($8/share).

Sunnyside is not as advanced compared to the amount of drilling and underground mapping when Taylor/Hermosa sold in 2018. Realistically, Sunnyside could be worth $300-500M after getting permits and drilling. $2-4/share for BRO is more likely.

Time will tell, but $25 a share doesnt work given the framework of the agreement thats stated in BROs MD&A and Corporate Presentation.
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