Jul 26, 2010
Vancouver, BC -- Further to press release 10-18 of July 23, 2010, Barkerville Gold Mines Ltd. has amended the terms of the previously announced offering through registered securities dealers of up to $5,000,000 in secured promissory notes and warrants. The Notes shall bear interest at a rate of 10% 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 the Company.
Up to 5,000,000 warrants may be issued in conjunction with the financing. Each warrant will entitle the holder thereof to purchase one common share of the Company at a price of $0.85 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 and released upon an approved 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"
J. Frank Callaghan
President and CEO
About Barkerville Gold Mines Ltd.
The Company has been developing its Cariboo Gold Project in Barkerville, B.C., which encompasses (from northwest to southeast) the former producing Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine, Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the Cariboo Hudson Mine. The Company commenced operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 111,000 hectares (275,000 acres) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining. The Company does not have any of its future gold production hedged.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
*please refer to cautionary note