Barker Minerals Ltd. -
NEWS - VANCOUVER, BRITISH COLUMBIA--
(CCNMatthews - Nov. 1, 2005) -
Barker Minerals Ltd. -
(TSX VENTURE:BML) (the "Company") is pleased to announce that is has entered into an agreement with Research Capital Corporation (the "Agent") pursuant to which the Agent has agreed to act as agent on a commercially reasonable efforts basis to carry out a private placement of up to 3,750,000 Units at a price of $0.20 per Unit, for gross proceeds of up to $750,000.
Each Unit will consist of one common share in the capital of the Company and one-half of a share purchase warrant. Each whole Warrant will entitle the holder to purchase one common share at a price of $0.30 per share in the first year and $0.40 per share in the second year, unless the closing price of the shares on the TSX Venture Exchange is equal to or greater than twice the applicable exercise price for a period of 10 consecutive trading days, in which case the Company may accelerate the expiry date by giving 30 days notice.
On closing, the Agent will receive a cash commission equal to 8% of the gross proceeds (4% in the case of purchasers on the President's List) and an option exercisable into shares equal to 10% of the number of Units sold (5% in the case of purchasers on the President's List) for a period of 18 months from closing at an exercise price of $0.20 per share. The Company will also pay the Agent a corporate finance fee of $20,000 by the issue of 100,000 common shares of the Company at a deemed price of $0.20 per share, plus GST and reasonable expenses.
The Company is also proceeding with its previously announced non-brokered private placement to raise gross proceeds of up to $300,000. Up to 1,500,000 Units are being offered at a price of $0.20 per Unit, each Unit having the same terms as the Units offered in the brokered private placement. The Company may pay finder fees of up to 10% of the gross proceeds and issue warrants to finders of up to 15% of the Units sold in connection with the non-brokered financing.
The Company intends to use the proceeds from the brokered and non-brokered private placements to fund further exploration work on a number of projects, including drilling on its massive sulphide prospect on its Frank Creek property, and for general corporate purposes. All of the securities to be issued in connection with the brokered and non-brokered private placements are subject to a hold period and may not be traded for four months from closing, except as permitted by applicable securities laws and the TSX Venture Exchange.
The Company also reports that its board has authorized the grant of 525,000 common shares of the Company to employees, consultants, management and directors. The options are priced at $0.25 per share and expire on October 17, 2010.
Over the past eleven years Barker Minerals has acquired and advanced exploration on its 283,697 acres of mineral properties in the Cariboo Mining District, which is located along the Cariboo Gold District, one of the most mineralized belts in British Columbia. The company has 18 projects at various stages of the exploration process, with five projects having defined drill-ready gold targets and precious metal bearing, massive sulphide targets on its 100% owned properties. Barker is currently developing exploration programs that are aimed at discovering gold and/or gold/copper mineralization on its Ace, Blackbear, and Kangaroo properties; and precious and base metal massive sulphide mineralization with known stringer zones on its Frank Creek property.
Statements in this release that are not historical facts are "forward-looking statements" that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. See the Company's documents filed on SEDAR (see www.sedar.com) from time to time for a further discussion of important risks and uncertainties that could cause actual results to differ materially from results referred to in forward-looking statements The Company does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
FOR FURTHER INFORMATION PLEASE CONTACT:
Barker Minerals Ltd.
Louis E. Doyle
(604) 530-8752
(604) 530-8751 (FAX)
barker@telus.net
www.barkerminerals.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Source: CCN Matthews (November 1, 2005 - 5:45 PM EST)
