Barkerville Gold Mines Ltd.
TSX VENTURE : BGM

Barkerville Gold Mines Ltd.

January 25, 2010 00:01 ET

Barkerville Raises $13,054,000 With Equity Issue

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2010) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM) (formerly International Wayside Gold Mines Ltd.) (the "Company") reports that the previously announced equity financing (News Release 09-35 November 20, 2009) including the overallotment option has been fully subscribed to and the issue has been increased.

The proceeds from the private placement will be used for the start up of the QR Mine and Mill, exploration and development on the Company's projects and working capital. The acquisition of the QR Mine and Mill remains subject to regulatory approval.

The Company has closed the second tranche of its private placement with D&D Securities Company acting as lead agent and Octagon Capital Corporation acting as co-agent, for gross proceeds of $9,613,200 by the issuance of 11,891,500 Subscription Receipts and 125,000 Units both at a purchase price of $0.80 per security. When combined with the first tranche of $3,440,800 as announced on December 30, 2009 the gross proceeds raised total $13,054,000. Proceeds totalling $9,513,200 of the Subscription Receipts will be deposited with Computershare Trust Company of Canada on Monday January 25, 2010. The Company has received regulatory approval to increase the equity issue to a maximum of 3,000,000 units and 16,200,000 receipts of which 1,775,000 Units and 14,542,500 Subscription Receipts have been issued. A final tranche of the private placement is expected to close on Tuesday January 26, 2010.

Each Subscription Receipt will entitle the holder thereof to acquire for no additional consideration, one unit consisting of one common share and one-half of one common share purchase warrant in the capital of the Company upon completion of their previously announced acquisition of the QR Mine and Mill. Each whole warrant issuable on conversion of the Subscription Receipts upon satisfaction of the escrow release conditions (the "Conversion Date") will be exercisable for a period of 18 months from the Conversion Date. Each Unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant issued in the Unit Offering, will be exercisable into one additional common share at a price of $1.00 per common share for a period of 18 months from Closing. All securities issued in the second tranche are subject to a hold period expiring May 23, 2010. The Subscription Receipts are convertible upon the receipt of all approvals necessary to acquire the QR Mine and Mill including the execution of a definitive purchase and sale agreement and regulatory approval from the TSX Venture Exchange.

On the Conversion Date, a payment equal to 7% of the gross proceeds raised in the Subscription Receipt Offering will be paid to the agents and broker's warrants will be issued which provide for the purchase of Units in an amount equal to 7% of the aggregate number of Units issued on the Conversion Date, exercisable for a period of 18 months from the Conversion Date at $0.80 per Unit.

About Barkerville Gold Mines Ltd.

The Company has been developing its Cariboo Gold Project in Barkerville, B.C., which encompasses (from northwest to south east) 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 1,065 square km (106,484 hectares) 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. On December 16, 2009, the Company entered into an agreement by which it will acquire the QR Mine and Mill, 110km by road from its proposed Bonanza Ledge open pit gold mine.

On Behalf of the Board of Directors

J. Frank Callaghan, President and CEO

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.
    Andrew Rees
    Director
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)
    www.barkervillegold.com