Barksdale Provides Transaction and Financing Update
TSXV: BRO OTCQB: BRKCF
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
Barksdale Provides Transaction and Financing Update
Vancouver, B.C. – September 16, 2020 - Barksdale Resources Corp. (“Barksdale” or the “ Company”)
(TSXV: BRO) (OTCQB: BRKCF) is providing an update on the acquisition of the San Javier del Cobre
project in Sonora, Mexico, which was previously announced on August 6, 2020 (the “Transaction”).
Following a detailed due diligence campaign, the Company identified certain title issues with respect to three
of the twelve mining concessions comprising approximately 307.46 hectares of the total lands covered under
the option. Tusk Exploration Ltd (“Tusk”) is in the process of rectifying these title issues and expects the
process to be completed in 2021. Until the title issues have been rectified, Barksdale and Tusk have agreed
to defer 35% of the Year 1 and Year 2 option cash and share payments (“Deferred Option Payment”). This
lowers the upfront Year 1 cash and share consideration delivered to Tusk from 4.0 million shares of Barksdale
and $50,000 in cash to 2.6 million shares of Barksdale and $32,500 in cash.
If the title defects are corrected on or before the th ird anniversary of the definitive agreement (see below),
Barksdale shall pay the Deferred Option Payment to Tusk within 30 days. If Tusk fails to correct the title
issues on or before the third anniversary of the definitive agreement, the three affected concessions will be
dropped from the option, the Deferred Option Payment cancelled and forfeited and the remaining option
payments to Tusk under the definitive agreement reduced by 35%. If Tusk is successful in clearing the title
defects on one or two of th e concessions, but not all three, they will receive a pro -rated percentage of the
Deferred Option Payment based on the amount of land recovered.
Both Tusk and Barksdale are now finalizing the terms of the definitive agreement for the Transaction. The
Company anticipates closing the private placement financing announced on August 6 and upsized on
September 1 (“Offering”), as well as the Transaction , on or about September 25. The Offering and
Transaction remain subject to customary closing conditions and acceptance of the TSX Venture Exchange.
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.
ON BEHALF OF BARKSDALE RESOURCES CORP
Rick Trotman
President, CEO and Director
TSXV: BRO OTCQB: BRKCF
Terri Anne Welyki
Vice President of Communications
778-238-2333
For more information please phone 778-238-2333, email [email protected] 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
includes “forward-looking information” under applicable Canadian securities legislation including, but not
limited to, the anticipated closing date for the Offering and San Javie r Transaction and the expected
rectification of certain title defects affecting three of the mining concessions comprising part of the San Javier
property. 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 are neither
promises nor guarantees, and are subject to known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile
equity and capital markets, lack of available capital, actual results of exploration activities, environmental
risks, future prices of base and other metals, operating risks, accidents, labor issues, delays in obtaining
governmental approvals and permits, and other risks in the mining industry. There are no assurances that
the Company will successfully complete the acquisition of San Javier or the Offering on the terms
contemplated or at all. In addition, there is uncertainty about the spread of COVID-19 and the impact it will
have on the Company’s operations, supply chains, ability to access mineral properties including San Javier,
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.