Barkerville Completes $28.5 Million Financing Of Common SharBGM.v BGMZF Barkerville Completes $28.5 Million Financing Of Common Shares And Flow-Through Shares; Announces 2018 Corporate Updates
by @nasdaq on December 18, 2018
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Dec. 18, 2018 (GLOBE NEWSWIRE) -- Barkerville Gold Mines Ltd. (TSXV:BGM) ("Barkerville" or the "Corporation") is pleased to announce, further to its announcements on November 26, 2018 and December 6, 2018, that the Corporation has completed a brokered private placement financing of (i) 40,132,581 common shares of the Corporation that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) ("Tranche One Flow-Through Shares") at a price of $0.50 per share for gross proceeds of $20,066,290.50, (ii) 3,625,000 common shares of the Corporation that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) ("Tranche Two Flow-Through Shares") at a price of $0.40 per share for gross proceeds of $1,450,000, and (iii) 20,554,941 common shares of the Corporation ("Common Shares") at a price of $0.34 per share for gross proceeds of $6,988,679.94 (the "Offering").
The Offering was led by Haywood Securities Inc., on behalf of a syndicate of underwriters that included Cormark Securities Inc. and Canaccord Genuity Corp. (collectively, the "Underwriters"). In consideration for their services, the Corporation has paid the Underwriters a cash commission equal to 5.0% of the gross proceeds from the Offering, excluding gross proceeds received from the sale of securities to Osisko Gold Royalties Ltd and Osisko Mining Inc.
Certain subscribers under the Offering are considered to be a "related party" of the Corporation, and have subscribed for an aggregate of 20,554,941 Common Shares and 425,000 Tranche Two Flow-Through Shares for gross proceeds of $7,158,679.94. Each subscription by a "related party" of the Corporation is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. Pursuant to MI 61-101, the Corporation has filed a material change report providing disclosure in relation to each "related party transaction" on SEDAR under Barkerville's issuer profile at www.sedar.com. The Corporation did not file the material change report more than 21 days before the expected closing date of the Offering as the details of the Offering and the participation therein by each "related party" of the Corporation were not settled until shortly prior to the closing of the Offering, and the Corporation wished to close the Offering on an expedited basis for sound business reasons. The Corporation is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Corporation is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Corporation's market capitalization, and no securities of the Corporation are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the Corporation is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(b) as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Corporation's market capitalization. The board of directors of Barkerville unanimously approved the Offering, with Sean Roosen and John Burzysnki having declared a potential conflict of interest in, and abstaining from voting on, the matters being considered.
The gross proceeds from the sale of the Tranche One and Tranche Two Flow-Through Shares will be used by the Corporation to fund the exploration and development of Barkerville's Cariboo Gold Project in central British Columbia. The net proceeds from the sale of Common Shares will be used to fund the exploration and development of the Corporation's Cariboo Gold Project in central British Columbia and for general corporate purposes.
All securities issued under the Offering are subject to a four month hold period which will expire April 19, 2019. The Offering is subject to final acceptance of the TSX Venture Exchange. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
2018 Corporate Updates
In 2018, on the exploration side, Barkerville has been actively exploring and delineating new mineral resources at the Cariboo Gold Project. A total of 123,000 meters of drilling occurred on the property in 2018, comprising 64,000 meters on Cow Mountain, 50,000 meters on Shaft Zone, 4,500 meters at Mosquito Creek and 4,800 meters on Grouse Creek Regional Target. Regional soil sampling and surface mapping also occurred in 2018. The results of this drilling will be included in an updated mineral resource estimate being prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, which is expected to be released in 2019.
In 2018, on the mining side, Barkerville has completed test mining at Bonanza Ledge gaining great knowledge of the deposit and underground conditions, as well as developing an in-house engineering and permitting -compliance team. While the proceeds raised from the sale of "flow-through shares" under the Offering will be focused on exploration activities, test mining may resume at Bonanza Ledge, subject to receiving an amendment to the active mine permit allowing mining of the BC Vein Zone and approval by the Board of Directors of an updated mine plan for the BC Vein Zone.
When all results are received and analyzed, a corporate update summarizing 2018 test mining and exploration results, as well as outlining objectives and catalysts for 2019 will be made available in early 2019.
For more information on Barkerville Gold Mines Ltd., please contact:
Chris Lodder
President and Chief Executive Officer
155 University Avenue, Suite 1400
Toronto, Ontario, Canada
clodder@barkervillegold.com
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; Barkerville's active exploration program at the Cariboo Gold Project; the timing and ability of Barkerville to complete an updated mineral resource estimate in 2019, or at all; the timing and ability of Barkerville to resume test mining at Bonanza Ledge, receive an amendment to the active mine permit and updating the internal mine plan, if at all; objectives, goals or future plans; statements regarding exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation's public documents filed on SEDAR at www.sedar.com. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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