BARKERVILLE GOLD MINES LTD. ANNOUNCES $28,000,000 BOUGHT DEAL FLOW-THROUGH EQUITY FINANCING
Barkerville Gold Mines Ltd. has entered into an agreement with Canaccord Genuity Corp., on behalf of a syndicate of underwriters, whereby the underwriters have agreed to purchase, on a bought-deal private placement basis, 25 million 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)) at a price of $1.12 per flow-through share for gross proceeds of $28-million. The issue price represents an approximate 24-per-cent premium to the closing price of common shares of the corporation on the TSX Venture Exchange on Aug. 31, 2017, and an approximate 29-per-cent premium to the volume-weighted average price of common shares of the corporation on the TSX-V over the last five trading days.
The corporation will use the gross proceeds of offering to finance the exploration and development of Barkerville's Cariboo gold project in central British Columbia, which expenditures will qualify as flow-through mining expenditures (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)). The qualifying expenditures will be renounced to the subscribers of flow-through shares with an effective date of no later than Dec. 31, 2017, and in an aggregate amount of not less than the gross proceeds of the offering.
The offering is expected to close on or about Sept. 28, 2017, and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX-V and the applicable securities regulatory authorities. The offering is being made by way of private placement in Canada. The securities will not be offered or sold in the United States. The securities issued under the offering will be subject to a hold period expiring four months and one day from the closing date of the offering. The offering is subject to final acceptance of the TSX Venture Exchange.
About Barkerville Gold Mines Ltd.
The company is focused on developing its extensive land package located in the historical Cariboo mining district of central British Columbia. Barkerville's mineral tenures cover 2,110 square kilometres along a strike length of 67 kilometres, which includes several past-producing hard-rock mines of the historical Barkerville gold mining camp near the town of Wells, B.C. An extensive drill program is currently under way with the goal of delineating additional high-grade gold mineralization.
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