Barkerville Gold Mines (BGM-V) March 27, '17 announces that it has entered into letter agreement (“Agreement”) with Osisko Gold Royaltie (OR-T) shereby Osisko has agreed to purchase an additional 0.75% net smelter return (“NSR”) royalty on the Cariboo Gold Project for a cash consideration of $12,500,000 (the “Royalty Purchase”). Upon completion of the Royalty Purchase, Osisko’s total NSR royalty will be 2.25%. The grant of the additional royalty will eliminate the Company’s current obligation to negotiate a gold stream agreement with Osisko upon completion of a feasibility study on its Cariboo Gold Project, which was granted as part of the investment agreement between Osisko and Barkerville dated February 5, 2016.
The Royalty Purchase constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”), as an insider of Barkerville is also an insider of Osisko. Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of Barkerville’s market capitalization.
For further information on Barkerville Gold Mines Ltd., please contact:
Chris Lodder
President & Chief Executive Officer
Suite 400-365 Bay Street
Toronto, Ontario, Canada
clodder@barkervillegold.com
About Barkerville Gold Mines Ltd.
The Company is focused on developing its extensive land package located in the historical Cariboo Mining District of central British Columbia. Barkerville’s mineral tenures cover 1,164 square kilometres along a strike length of 60 kilometres which includes several past producing hard rock mines of the historic Barkerville Gold Mining Camp near the town of Wells, British Columbia. The QR Project, located approximately 110 kilometres by highway and all weather road from Wells was acquired by Barkerville in 2010 and boasts a fully permitted 900 tonne/day gold milling and tailings facility. Test mining of the Bonanza Ledge open pit was completed in March of 2015 with 91,489 tonnes of ore milled producing 25,464 ounces of gold. The Company has completed a number of drilling and exploration programs over the past 20 years and is currently compiling this data with all historical information in order develop geologic models which will assist new management and provide the framework to continue to explore the Cariboo Gold Project. An extensive drill program is currently underway with the goal of delineating additional high grade gold mineralization. |
