Barksdale Closes Financing and Completes Extension of Financial Instrument
Barksdale Closes Financing and Completes
Extension of Financial Instrument
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2022) - Barksdale Resources Corp. (TSXV:
BRO) (OTCQX: BRKCF) ("
Barksdale
" or the "
Company
") is pleased to announce that further to its
news releases dated September 6, September 21 and October 3, 2022, it has now closed the final
tranche of its non-brokered private placement financing ("
Financing
") with Teck Resources Limited
("
Teck
"), with respect to Teck's pro-rata equity participation right.
In the Financing, Teck subscribed for 550,000 units (the "
Units
") for gross proceeds of $264,000.
The
Units have identical terms to the Units issued in the first tranche of the Financing that closed on
September 21, 2022 (see News Release dated September 21, 2022).
Each Unit consists of one
common share of Barksdale (each a "
Common Share
") and one-half (½) of one transferable share
purchase warrant
(each whole warrant, a "
Warrant
"), with each Warrant entitling the holder thereof to
purchase one additional Common Share at $0.72 for a period of three years.
Teck now holds
approximately 9.9% of Barksdale's current equity on a partially diluted basis.
The net proceeds from the entire Financing will be used to advance the Company's mineral projects and
for general corporate and working capital purposes.
All shares issued to Teck under the Financing are
subject to a four month hold period expiring February 6, 2023.
No fees or commissions were paid with
respect to Teck's participation in the Financing.
Further to its news releases dated September 6 and October 14, 2022, the Company has now received
TSX Venture Exchange acceptance to the extension of the maturity date of the secured convertible
debentures ("
Debentures
") administered by Delbrook Capital Advisors Inc. by one year until December
31, 2023 ("
Debenture Extension
").
The Debentures have a remaining principal amount of $1,500,000
and all other terms of the Debentures remain unchanged except for the conversion price, which has
increased to $0.55 per share from $0.45 per share.
Incidental to the Debenture Extension, the Company issued 206,595 units of the Company (the
"
Interest
Units
") in settlement of $99,166 of accrued interest payable on the Debentures.
Each Interest Unit
consists of one Common Share and one-half
(½) of one share purchase warrant (each whole warrant, an
"
Interest
Warrant
").
Each Interest Warrant entitles the holder to acquire one Common Share at a price
of $0.72 for a period of three years from the date of issuance. Any subsequent interest accrued under
the Debentures is payable in cash in accordance with the terms and conditions of the Debentures.
In exchange for extending the Debentures, the Company has also issued an extension fee of 2,777,777
share purchase warrants, exercisable into 2,777,777 Common Shares at a price of $0.72, for a period
lasting up to December 31, 2023 ("
Extension
Warrants
").
Should any part of the Debentures be repaid or converted prior to the maturity date, a pro-rata portion of
the Extension Warrants will have their maturity date accelerated to the later of (i) one year from closing of
the Debenture Extension, and (ii) 30 days after the date of repayment or conversion.
All securities issued with respect to the Interest Units, Interest Warrants and Extension Warrants and
underlying Common Shares are subject to a four month hold period expiring February 22, 2023.
Barksdale Resources Corp.
is a base metal exploration company headquartered in Vancouver, BC,
that is focused on the acquisition, exploration and advancement of highly prospective base metal
projects in North America.
Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver and
San Antonio copper projects, both of which are in the Patagonia mining district of southern Arizona, as
well as the San Javier copper-gold project in central Sonora, Mexico.
ON BEHALF OF BARKSDALE RESOURCES CORP
Rick Trotman
President, CEO and Director
Terri Anne Welyki
Vice President of Communications
778-238-2333
For more information please phone 778-558-7145, email
or visit
www.BarksdaleResources.com
.
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 news
release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news
release contains "forward-looking information" under applicable Canadian securities legislation
including, but not limited to the Company's proposed use of proceeds from the Financing.
Such
forward-looking information reflects management's current beliefs and are based on a number of
estimates and assumptions made by and information currently available to the Company that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which
may cause the actual results and future events to differ materially from those expressed or implied by
such forward-looking information.
Readers are cautioned that such forward-looking information is
neither a promise nor guarantee, and is subject to known and unknown risks and uncertainties
including, but not limited to, delays in obtaining governmental, regulatory or third party approvals as
well as general business, economic, competitive, political and social uncertainties, uncertain and
volatile equity and capital markets and lack of available capital. In addition, there is uncertainty about
the continued spread and severity of COVID-19, the ongoing war in Ukraine and rising inflation and
interest rates and the impact they will have on the Company's operations, supply chains, ability to
access mineral properties, conduct due diligence or procure equipment, contractors and other
personnel on a timely basis or at all and economic activity in general. All forward-looking information
contained in this news release is qualified by these cautionary statements and those in our continuous
disclosure filings available on SEDAR at
www.sedar.com
.
Accordingly, readers should not place
undue reliance on forward-looking information. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result of new information, future events
or otherwise, except as required by law.
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND
DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT
SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE
UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/141362