Barkerville Gold Mines Ltd. Receives a Term Sheet for a $15 Million Gold Loan Facility and Makes Application to the TSX-V for Reinstatement
(firmenpresse) - Barkerville Gold Mines Ltd. Receives a Term Sheet for a $15 Million Gold Loan Facility and Makes Application to the TSX-V for Reinstatement
September 24, 2013, Vancouver, British Columbia -- Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") is pleased to announce that the Company has entered into a term sheet (the "Term Sheet") with 2176423 Ontario Limited (as "Lender"); which the Company is informed is wholly-owned by Eric Sprott; respecting a proposed $15 million gold loan facility (the "Facility") to be provided to the Company by the Lender. The Facility is expected to be advanced to the Company on or about October 4, 2013, and in conjunction with the Company's planned reinstatement for trading on the TSX Venture Exchange (the "TSX-V"); assuming the successful completion of the Company's reinstatement application with the TSX-V; in a single advance of $15 million in accordance with the terms and conditions of a proposed Credit Agreement which is presently being prepared. The Company intends to use the proceeds of the Facility to pay for existing trade payables, to repay its recent bridge loan of $1.5 million and for the payment of operating expenses on a going forward basis.
The Facility is to be guaranteed by the Company's subsidiaries (together with the Company, the "Credit Parties") and secured by first ranking security over all of the Credit Parties' present and future assets and a pledge of the shares of the Company's subsidiaries (the "Security"). The Facility is to be due and payable in full on or before 30 months after the closing date and the Company may not voluntarily prepay the Facility at any time prior to maturity without the Lender's prior written consent. The Facility does not bear interest. The Facility is to be repaid through three cash payments made every 10 months after the closing date (each a "Repayment Date"; and that being on the dates which are 10, 20 and 30 months, respectively, from the closing date) based each time on what would be the notional value of 4,166.67 ounces of gold to be deliverable on each such Repayment Date (being 12,500 ounces over the term of the Facility) and priced at the then Bloomberg composite closing value of gold (ticker: GLD) at 4 p.m. on the day prior to each particular Repayment Date over the term of the Facility (in each instance the "Gold Price"; and the notional value being repaid in cash each time being the "Repayment Amount" in each instance). If the then current Gold Price is less than US$1,200 per ounce on a particular Repayment Date, then the Company's corresponding Repayment Amount shall be determined using a reference price of US$1,200 per ounce. If the then current Gold Price is above US$1,600 per ounce on a particular Repayment Date, then the Company's corresponding Repayment Amount shall be determined using a reference price of US$1,600 per ounce. Notwithstanding the foregoing, the Company will guarantee a minimum rate of return to the Lender of 10% per annum on the aggregate principal amount of the Facility over the life of the Facility.
In consideration for the advance of the Facility and, currently therewith, the Company, subject to prior TSX-V approval, will issue 9,000,000 transferable share purchase warrants of the Company (each a "Bonus Warrant") which will be exercisable for 30 months and will be exercisable at the price which is the greater of (i) $0.50 and (ii) a 20% premium to the volume weighted average trading price of the Company's common shares on the TSX-V for the five trading day period commencing five trading days after the Company's common shares are reinstated for trading (the "Exercise Price"). After reinstatement for trading of the Company, and in the event that the volume weighted average trading price of the Company's common shares on the TSX-V for a period of 10 consecutive trading days is at a 50% premium to the Exercise Price (the "Exercise Trigger"), the Company may require the Lender to exercise $5,000,000 worth of the Bonus Warrants (the "Forced Exercise") within 10 calendar days of the date the Company provides written notice (the "Exercise Notice") to the Lender. Furthermore, in consideration for structuring the Facility, the Company has agreed to pay the Lender a $125,000 structuring fee together with the Lender's reasonable legal and other out-of-pocket expenses incurred in connection with the Facility.
In conjunction with the planned Facility closing the Company has now made a formal application to the TSX-V to have its common shares reinstated for trading.
"J. Frank Callaghan"
J. Frank Callaghan
President and CEO
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 cover 1,164 km2 along a strike length of 60 km and approximate width of 20 km, including the Cariboo Gold Project, the Bonanza Ledge Gold Project, the Barkerville Mountain and Island Mountain exploration targets and seven past producing hard rock mines. 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 km by highway and all-weather road from the Barkerville Gold Camp. The Company began pouring doré gold in September 2010, continued until December 2011, and resumed in January 2013. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. The Company has completed significant drilling and exploration programs and, together with the historical data, is compiling all information to determine the geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects. This news release has been prepared on behalf of the Board of Directors of the Company which takes full responsibility for its contents.
Cautionary Statement on Forward-Looking Information
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSXV. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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Datum: 25.09.2013 - 21:38 Uhr
Sprache: Deutsch
News-ID 300291
Anzahl Zeichen: 8857
contact information:
Town:
Wien
Kategorie:
Business News
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