Jul 23, 2010
Vancouver, BC - Barkerville Gold Mines Ltd. announces an offering through registered securities dealers of up to $5,000,000 in secured promissory notes. The Notes shall bear interest at a rate of 8% per annum calculated and paid quarterly. The Notes shall be secured by way of a charge against all of the assets, property and undertaking of 0847423 BC Ltd., a wholly owned subsidiary of the Company.
Each warrant issued in conjunction with the financing will entitle the holder thereof to purchase one common share of the Company at a price of $1.00 per share for a period of two years from closing provided that if, after four months and one day after closing, the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange, for a period of 20 consecutive trading days exceeds $2.00, the Company may, within five days after such event, provide notice to the warrant holders of early expiry and thereafter, the Warrants will expire on the date which is 30 days from the date of such notice.
Upon closing the Company will pay a finder's fee of 6% of the gross proceeds raised.
Total net proceeds of the financing will be held by an escrow agent and released upon an agreed upon expenditure budget. During the period the Notes are outstanding, the Company cannot issue any further debt without obtaining the approval of two-thirds of the note holders.
Proceeds of the financing will be used for further development at the QR Mine, exploration and development at the Company's Cariboo Gold Project, continued mill operations and for general working capital.
On Behalf of the Board of Directors
"J. Frank Callaghan"