Vancouver, British Columbia, September 26, 2013 - Barkerville Gold Mines (BGM.V) (Frankfurt:1WUB) has entered into a term sheet for $15 million. The gold loan facility will be provided by 2176423 Ontario Limited, a company wholly-owned by Eric Sprott.
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. (SII.TO) a leading independent asset manager, capitalized in excess of $675 million.
Barkerville anticipates receiving the funds on or about October 4th, in conjunction with the company`s expected reinstatement for trading on the TSX Venture Exchange. The company plans to use these funds to pay existing trade payables, to repay its recent bridge loan of $1.5 million and for ongoing operating expenses.
The repayment terms of the lending facility, which have a maximum term of 30 months, are based on the price of gold. Furthermore, Barkerville will issue 9 million transferable share purchase warrants, with an exercise price tied into the trading price of the shares. For specific details on this transaction, which requires exchange approval, please refer to Barkerville`s current news release.
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.
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