Barkerville Gold Mines Ltd.
TSX VENTURE : BGM
FRANKFURT : IWUB

Barkerville Gold Mines Ltd.

November 25, 2010 08:31 ET

Barkerville Announces Closing of $5,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 25, 2010) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") announces today that it has completed its private placement financing previously announced on November 15, 2010, with certain institutional and accredited buyers who purchased an aggregate of 3,846,154 common shares of the Company at a price of $1.30 per common share for gross proceeds of $5,000,000 (all figures $CDN).

The proceeds of the private placement will be used, subject to approvals under the Mines Act (British Columbia), to commence mining operations at the Bonanza Ledge proposed open pit mine, further development and drilling of the Company's assets and for general working capital purposes.

D&D Securities Inc. acted as agent with respect to the private placement and received a 5% commission by the issuance of 192,308 common shares and 192,308 share purchase warrants. Each share purchase warrant entitles the holder to purchase one common share at a price of $1.30 per share exercisable on or before November 24, 2011. The Company also paid in respect of the subscriptions by U.S. investors a cash fee of 1.5% being $33,182.37 to MGI Securities (USA) Inc. to effect sales to such U.S. institutional investors. All of the securities issued are subject to a hold period expiring March 25, 2011.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdictions. These securities have not been registered under the United States Securities Act of 1933 or any state securities law, and they may not be offered or sold in the United States unless an exemption form registration is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States.

About Barkerville Gold Mines Ltd.

The Company has been focused on exploration and development of gold projects in the Cariboo Mining District in central British Columbia since 1994. The Company's mineral tenures now cover over 1,225 square kilometers of mineral tenures encompassing 7 past producing hard rock mines and three NI43-101 gold deposits, including the QR Mine & Mill. The QR Mine & Mill was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in February and the Company began pouring doré gold in September of this year. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. and plans to relocate it to the gold deposits in the Barkerville Gold Camp near Wells, B.C. and upgrade it to a 2,000-tonne/day facility subject to all approvals. The Company has not hedged any of its future gold production.

On behalf of the Board of Directors

J. Frank Callaghan, President and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company's operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.

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.

Contact Information

  • Barkerville Gold Mines Ltd.
    J. Frank Callaghan
    President and CEO
    604 669-6463 or Toll Free: 1-800 663-9688
    604 669-3041 (FAX)
    www.barkervillegold.com