BGM.v BARKERVILLE AGREES TO SELL 0.75% NSR ROYALTY ON ITS CARIBOO GOLD PROJECT FOR $12,500,000
Barkerville to sell extra 0.75% NSR to Osisko Gold
2017-03-27 10:57 ET - News Release
Also News Release (C-OR) Osisko Gold Royalties Ltd
Mr. Chris Lodder of Barkerville reports
BARKERVILLE AGREES TO SELL 0.75% NSR ROYALTY ON ITS CARIBOO GOLD PROJECT FOR $12,500,000
Barkerville Gold Mines Ltd. has entered into letter agreement with Osisko Gold Royalties Ltd. whereby Osisko has agreed to purchase an additional 0.75-per-cent net smelter return (NSR) royalty on the Cariboo gold project for a cash consideration of $12.5-million. Upon completion of the royalty purchase, Osisko's total NSR royalty will be 2.25 per cent. The grant of the additional royalty will cancel Osisko's royalty right which was granted pursuant to the investment agreement between Osisko and Barkerville dated Feb. 5, 2016, however, Osisko will retain a right of first refusal relating to any gold stream offer received by Barkerville with respect to the Cariboo gold project.
The royalty purchase constitutes a related party transaction as defined in Multilateral Instrument 61-101 -- protection of minority securityholders in special transactions, as an insider of Barkerville is also an insider of Osisko. Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25 per cent of Barkerville's market capitalization.
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 1,164 square kilometres along a strike length of 60 kilometres which includes several past-producing hardrock mines of the historic Barkerville gold mining camp near the town of Wells, B.C. The QR project, located approximately 110 kilometres by highway and all-weather road from Wells, was acquired by Barkerville in 2010 and boasts a fully permitted 900-tonne-per-day gold milling and tailings facility. Test mining of the Bonanza Ledge open pit was completed in March of 2015 with 91,489 tonnes of ore milled producing 25,464 ounces of gold.
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