Jan 23, 2012
Vancouver, BC - Barkerville Gold Mines Ltd. (TSXV:BGM) (the "Company") announces that it has raised a further $5,997,788.43 together with the $18,353,636.05 raised in its previously announced financing through D&D Securities Inc. and M Partners Inc. of up to $20,000,000 in units with an additional green shoe option of up to $5,000,000 in units as disclosed on December 5, 2011 as amended December 16, 2011. The Company issued 7,056,218 units at a price of $0.85 per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share at a price of $1.10 per share until July 17, 2013 and July 20, 2013 respectively. In connection with the financing the Company will pay to the Agents a cash commission of up to 7% of the gross proceeds raised and issue broker's warrants to purchase common shares in an amount of up to 10% of the aggregate number of shares issued, exercisable until July 20, 2013 at $0.85 per share. All the securities issued are subject to a four month hold period expiring on May 17, 2012 and May 20, 2012 respectively.
The Company has used the net proceeds: (i) to purchase Mosquito Consolidated Gold Mines Limited's 3% NSR on the Cariboo Gold Quartz Property, Island Mountain Property and Mosquito Creek Property and acquire all their residual property interests in the Cariboo Gold Quartz Property; (ii) to retire its contractual obligations with Procon Mining Partnership; and (iii) to pay certain outstanding liabilities and to provide working capital.
The Company is in the process of seeking advisors and additional directors with the necessary experience to compliment its management team and bring additional managerial, technical and operational experience to develop its properties, as it prepares for the transition from a junior mineral exploration company to an established gold producer in British Columbia.
As part of the Equity Financing Standard Drilling & Engineering Ltd. sold 1,000,000 shares of the Company through the facilities of the TSX Venture Exchange at a price of $0.85 per share and used the proceeds from the sale towards its subscription for 2,764,706 units under the private placement. The company shares a common director with Barkerville and therefore the subscription constitutes a "related party transaction" (MI 61-101) as, the Company is exempt from the requirement to obtain an independent valuation and minority shareholder approval.