Barkerville Announces Non-Brokered Private Placement To Raise Up To $10,000,000, Concurrent Shares For Debt Settlement and Ex...
Date : 02/28/2014 @ 9:02AM
Source : Access Wire
Stock : Barkerville Gold Mines Ltd (BGM)
Quote : 0.58 -0.1 (-14.71%) @ 9:42AM
Barkerville Announces Non-Brokered Private Placement To Raise Up To $10,000,000, Concurrent Shares For Debt Settlement and Ex...
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Vancouver, BC - Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") is pleased to announce a proposed non-brokered private placement (the "Offering") of up to 20,000,000 common shares of the Company (each a "Share"), at a subscription price of $0.50 per Share, for gross proceeds of up to $10,000,000.
Finder's fees may be payable in connection with the completion of the Offering in accordance with TSX Venture Exchange ("TSXV") policies. The net proceeds of the Offering are expected to be utilized by the Company for general corporate and working capital purposes.
Concurrent with the Offering, the Company also intends to settle a total of up to $1,500,000 of indebtedness with certain creditors (the "Shares for Debt Settlement") by issuing up to 3,000,000 Shares at a deemed price of $0.50 per Share.
In light of the Company's current working capital position, and in order to preserve capital to fund the development of the Company's various projects, the Company has agreed to the conversion of the indebtedness into Shares subject to the prior approval of the TSXV.
All securities issued in connection with closing of each of the Offering and Shares for Debt Settlement will be subject to a statutory hold period of four months plus a day from the date of issuance of the Shares in accordance with applicable securities legislation.
Closing of each of the Offering and the Shares for Debt Settlement is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including that of the TSXV.
The Company and its subsidiaries have also agreed with 2176423 Ontario Limited (the "Lender") to extend the effective date of the $1,500,000 minimum working capital requirement from February 1, 2014 to August 1, 2014 (the "Working Capital Covenant Extension") under the $15 million gold loan facility (the "Facility") governed by the credit agreement dated October 8, 2013. In connection with the Working Capital Covenant Extension, the Company has agreed to increase the notional amount of gold delivered to the Lender as repayment of the Facility by 45 ounces of gold over the life of the Facility, to increase the maximum reference price of gold from $1,600 to $1,650 per ounce for the purpose of calculating the repayment amounts as well as the mandatory prepayment amounts under the Facility and to increase the reference price of gold from $1,600 to $1,650 per ounce for the purpose of calculating the voluntary prepayment amounts under the Facility.
"J. Frank Callaghan"
J. Frank Callaghan
President and CEO
