Land Acquisition to Double Barksdale’s Property Position Near Sunnyside
BRO: TSXV BRKCF: OTCQB
Land Acquisition to Double Barksdale’s Property Position
Near Sunnyside
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. – July 16, 2019 - Barksdale Capital Corp. (“Barksdale” or the
“Company”) (TSXV: BRO) (OTCQB: BRKCF) is pleased to announce the acquisition of
a 100% interest in the San Antonio property (“ San Antonio”) from Teck American
Incorporated (“Teck”). The San Antonio property is comprised of 315 mineral claims
totaling 6, 300 acres ( 2,550 hectares), located approximately five kilometers
southeast of Barksdale’s flagship Sunnyside project in Santa Cruz County, Arizona
and is immediately adjacent to the southeastern border of South32’s Hermosa
project.
Highlights
• The acquisition increases Teck’s equity stake in Barksdale to 9.9% from 8.0%
• The large San Antonio property covers 6,300 acres in 315 mineral claims, more
than doubling Barksdale’s land position in the Patagonia district
• Previous work by Teck at San Antonio includes extensive geophysical surveys
which outline a shallow IP anomaly, designated the Cosmos target, that
Barksdale interprets as a potential shallow buried copper porphyry
Barksdale’s President and CEO, Rick Trotman commented, “ In addition to our key
land position at Sunnyside, the San Antonio acquisition is the next major step in
Barksdale’s effort to consolidate its holdings in the greater Patagonia district. The
San Antonio property provides Barksdale shareholders with additional exposure to
this world-class mineral trend and, more specifically, to a potential copper porphyry
target that has been outlined over several successive campaigns of geologic and
geophysical studies.”
San Antonio Technical Details
The San Antonio property encompasses the southern extension of the Harshaw Fault,
which is thought to be a key controlling structure for the emplacement of multiple
mineralized systems within the district. The Harshaw Fault can be traced over a
length of at least 12 kilometers including its projected surface trace beneath thin post
mineral gravel cover in the southern portion of the district. The Cosmos porphyry
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target, located in the central portion of the San Antonio property, is interpreted to
occur on the eastern flank of the Harshaw Fault.
Figure 1. Patagonia District Mineral Claim Map.
While multiple copper porphyry deposits have been discovered within the Patagonia
district, including the Ventura, Sunnyside, and Red Mountain deposits, all have been
shown to be deeply buried. Work completed to date suggests that the Cosmos target
is shallow, starting at 100 meters depth, and located under a thin pediment of
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Ternary gravel cover which has masked any surficial indications that would have led
to its discovery through traditional prospecting methods. The property has never
been drilled.
Extensive work has been completed on the San Antonio property, including geologic
mapping, geochemical sampling, and multiple geophysical surveys including passive
seismic, gravity, induced potential (IP), and airborne magnetics.
Barksdale’s technical and permitting teams are designing a drilling program to test
the Cosmos target as well as a Plan of Operations that will be submitted to the USFS
in due course.
Terms of the San Antonio Purchase Agreement
Under the terms of a Purchase Agreement dated July 15, which is subject to TSX
Venture Exchange acceptance, Barksdale will acquire a 100% interest in San Antonio
in consideration for 898,809 Barksdale shares as well as reimbursement of 2019 -
2020 federal claim mainte nance fees totaling approximately US$52,000 .
Additionally, Teck will retain a one and a half percent 1.5% net smelter return royalty
(“NSR”) on future production as well as a right of fir st refusal over San Antonio .
Except for the royalty in favor of Teck, the San Antonio property is not subject to any
pre-existing royalties. All shares issued to Teck will be subject to a four month hold
period.
Following closing of the Acquisition, Teck will hold a pproximately 9.9% of Barksdale
on a non-diluted basis with a total of 4,308,604 shares.
Technical information in this news release has been reviewed and approved by Lewis
Teal, Senior Consultant to the Company and a ‘Qualified Person’ as defined under
Canadian National Instrument 43-101.
Barksdale Capital Corp. is a base metal exploration company headquartered in
Vancouver, BC, that is focused on the acquisition and exploration of highly
prospective base metal projects in the United States. Barksdale’s portfolio of assets
is located within a world -class base metal district in southern Arizona and is
surrounded by some of the world’s largest mining companies.
ON BEHALF OF BARKSDALE CAPITAL CORP
Rick Trotman
President, CEO and Director
604-398-5385
Terri Anne Welyki
Vice President of Communications
778-238-2333
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For more information please phone 604-398-5385, email
[email protected] or visit www.BarksdaleCapital.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 acquisition of San Antonio a nd its
prospective trends, targets and mineralization . 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 a nd volatile equity and capital markets, lack of available
capital, actual results of exploration activities, environmental risks, future prices of base
metals, operating risks, accidents, labor issues, delays in obtaining governmental approvals
and permits, and other risks in the mining industry. In addition, the close proximity of San
Antonio to the historic Washington Camp – Duquesne base metal district is not necessarily
indicative of the mineralization at San Antonio. There are no assurances that the Co mpany
will successfully complete the acquisition of San Antonio on the terms set out herein or at all.
All forward-looking information contained in this news release is qualified by these cautionary
statements and those in our continuous disclosure filing s 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 info rmation, 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.