Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

June 18, 2012 08:00 ET

Barkerville Gold Mines Ltd.: Goldstream Mill Purchase Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2012) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") announces that it has closed the purchase of the Goldstream Mill facility, tailings pond and related mineral leases through the acquisition (the "Acquisition") of Bethlehem Resources (1996) Corporation ("BRC") under the terms previously disclosed on September 23, 2010 (News Release 10-25) by making its final payment of $550,000 and 543,000 common shares at a deemed value of $0.92 per share.

It is the Company's intention, subject to approvals, to relocate, refurbish and upgrade the Goldstream mill facility to a location in the vicinity of the Gold Quartz mine on Cow Mountain, near Wells, central B.C., where two of the Company's NI 43-101 gold resources and proposed open-pit deposits are located. Upon relocation and if supported by feasibility work, the Company plans to upgrade the mill with an additional ball mill and a carbon-in-pulp circuit, to an increased capacity of 3,000 tonnes per day.

The Goldstream Mill is a custom mineral processing plant located in the Revelstoke Mining Division, approximately 90 km north of Revelstoke, B.C. (via Hwy 23). It is a permitted facility currently on care and maintenance, with available accommodation in the adjacent tailings pond for possible future operations.

The Acquisition was completed pursuant to a share purchase agreement ("Agreement") between the Company, BRC and International Bethlehem Mining Corporation (TSX VENTURE:IBC) ("IBC") dated September 2, 2010 whereby the Company purchased all the issued and outstanding shares of BRC from IBC. Pursuant to the Agreement, the Company paid IBC an aggregate purchase price of $3,300,000. The purchase price was satisfied by the Company paying IBC a $50,000 deposit, a $200,000 due diligence fee, $250,000 on each of the 6 month and 12 month anniversaries of the Closing Date and $550,000 on the 18 month anniversary of the Closing Date. The Company also paid $2,000,000 by the issuance of $500,000 worth of shares on the 6 month anniversary, the 12 month anniversary and the 18 month anniversary of the Closing Date. The number of shares issued to IBC was calculated based on the volume weighted-average price of the Company's shares, subject to a floor price of $0.92 per share totaling 1,614,941 shares.

The Company's permitted Bonanza Ledge open-pit mine on the adjacent Barkerville Mountain is in the preliminary mine startup stages as the Company seeks necessary government approvals to handle Bonanza Ledge ore at the offsite QR mill facility.

About Barkerville Gold Mines Ltd.

Since the mid-1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures now cover over 117,691.14 hectares, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property 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 the first quarter of fiscal 2011 and the Company began pouring doré gold in September 2010 and continued until December 2011. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. On December 5, 2011 the Company received, under the British Columbia Mines Act, their Mine Permit approving the Mine Plan and Reclamation Program for Bonanza Ledge. The Company is awaiting permits to mill ore from Bonanza Ledge at the QR Mine facility. The Company has completed significant drilling and exploration programs and together with the historical data is compiling all information to determine geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects.

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)