RE:SP going down ? Why ? Who's selling ? Only a guess but have you seen the Jr. Weed Stocks lately.... that money is coming from somewhere... I am betting that there is a whole bunch of selling on longer term stocks for the potential of short term profits.
I have a second theory although a bit more sketchy... If you read the NR from Dec, last year... it implies that the flow through shares were purchased by somebody as potential charitable donations... these were frozen until May 2017 and then could be sold to fund any charity that recieved the shares. Thats potential up to 15 million shares being sold off as required. As they were a donation...selling at 60¢ is still 60¢ in the pocket... abit vague but re-read the release below.
All theories but credible... TORONTO, Dec. 19, 2016 /CNW/ -
Barkerville Gold Mines Ltd. (TSXV:BGM) ("
Barkerville" or the "
Company") is pleased to announce that is has closed its previously announced fully-marketed private placement of flow-through common shares of the Company, led by Canaccord Genuity Corp., together with National Bank Financial Inc., as agents (the "
Agents").
The Company issued an aggregate of 20,588,500 flow-through common shares of the Company ("Flow-Through Shares"), comprised of (i) 15,032,000 Flow-Through Shares at a price of C$0.60 per share, and (ii) 5,556,500 Flow-Through Shares at a price of C$0.58 per share, for total aggregate proceeds of C$12,241,970 (the "Offering"). The Company understands that purchasers of Flow-Through Shares at $0.60 per share may, as part of charitable donation arrangements, subsequently donate such shares to "qualified donees" as defined in the Income Tax Act (Canada).
The Company paid a total cash commission of $489,728.19 to the Agents, equal to (i) 5% of the gross proceeds of the Offering from purchasers not on the "President's List", and (ii) 3% of the gross proceeds of the Offering from purchasers on "President's List".
The gross proceeds received by the Company from the Offering will be used to incur Canadian exploration expenses on the Company's properties in the Province of British Columbia that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures"). The Qualifying Expenditures will be renounced to the subscribers with an effective date no later than December 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the Offering.
The securities issued pursuant to the Offering will be subject to a statutory four month hold period ending on April 20, 2017 pursuant to applicable securities legislation.