Vancouver, British Columbia--(Newsfile Corp. - October 25, 2013) - Barkerville Gold Mines (TSXV: BGM) (Frankfurt: 1WUB) announced the terms of warrants attached to the $15 million gold loan facility provided by 2176423 Ontario Limited, a company wholly-owned by Eric Sprott. The $15 million facility was advanced on October 8th and released from escrow on October 9th, when Barkerville's shares were re-instated for trading on the TSX Venture Exchange.
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Eric Sprott is well known in the resource industry, having founded Sprott Securities in 1981, which is now Cormark Securities, one of Canada's largest independently owned securities firms. Eric is currently Chairman of TSX listed Sprott Inc. (TSX:SII) a leading independent asset manager, capitalized in excess of $642 million.
The price of these bonus warrants was set at $0.89, which was calculated on the volume weighted average trading price of the shares, based on the 5 trading day period commencing on the 6th trading day after the shares were re-instated. Barkerville has a forced warrant exercise option, under which it may require 2176423 Ontario Limited to exercise $5 million worth of the bonus warrants. This could occur if Barkerville's volume weighted average trading price exceeds $1.34 per share, a 50% premium to the $0.89 exercise price, for 10 consecutive trading days.
In connection with the gold loan facility, Barkerville also issued 360,000 finder's warrants, which also have a forced exercise option, based on similar terms. Should these warrants get exercised, Barkerville has no shortage of projects on which to spend these additional funds.
Since the mid-1990s, Barkerville has focused on the exploration and development of gold projects in the Cariboo Mining District in Central British Columbia. The company's mineral tenures cover 1,164 square kilometres along a strike length of 60 kilometres and approximate width of 20 kilometres. They include 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 per day gold milling facility and permitted gold mine located approximately 110 kilometres 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. BC.
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 these projects.
Barkerville currently trades at $0.87 and is capitalized in excess of $95 million. For a more information, please visit Barkerville's website at www.barkervillegold.com phone 604-669-6463 or email info@barkervillegold.com.
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