Barksdale Announces C$1.85 Million Financing and New Strategic Shareholder
BRO:TSXV BRKCF:OTCQB
Barksdale Announces C$1.85 Million Financing and New
Strategic Shareholder
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. – June 11, 2019 - Barksdale Capital Corp. (“Barksdale” or the
“Company”) (TSXV: BRO) (OTCQB: BRKCF) is pleased to announce that Teck
Resources Limited (“Teck”) has agreed to make a strategic investment in the
Company by way of a private placement (“Placement”).
Highlights:
• Barksdale further strengthens its shareholder register by adding Teck,
Canada’s largest diversified resource company, with an 8% interest
• The C$1.85 million Placement will provide Barksdale with capital to further
advance the Sunnyside project
• Osisko Gold Royalties, Barksdale’s largest investor, has elected to maintain its
15.1% interest
Barksdale’s CEO Rick Trotman commented, “Teck’s investment in Barksdale is a
strong vote of confidence in the technical merits of the Company’s Sunnyside project
as well as management’s strategy and vision moving forward. With the proceeds of
the private placement we look forward to advancing the permitting process and doing
further work in preparation for an exploration drilling program at Sunnyside, which
we believe has the potential to host a significant base metal system.”
The Placement will consist of a total of 4,016,723 common shares of the Company at
a price of C$0.46 per share for total proceeds of C$1,847,693. Teck has subscribed
for 3,409,795 common shares for gross proceeds of $1,568,506. Following the
Placement, Teck will own approximately 8.0% of the issued and outstanding common
shares of Barksdale on a non-diluted basis.
In connection with the Placement, Barksdale has agreed to grant Teck an equity
participation right to maintain its pro-rata ownership in the Company for as long as
it owns more than 5% of the outstanding common shares of Barksdale. Additionally,
Teck has been granted a first right of refusal on the sale of the Four Metals property.
BRO:TSXV BRKCF:OTCQB
The Company is pleased to announce that Osisko Gold Royalties (“Osisko”) has
elected to maintain its 15.1% interest in Barksdale and will subscribe for 606,928
common shares for gross proceeds of $279,187.
All securities issued in this Placement are subject to customary hold periods of four
months and one day. No fees were paid in connection with the financing.
The net proceeds from the Placement will be used to advance the Company’s mineral
projects, including the Sunnyside project, and for general corporate and working
capital purposes. The Placement is subject to receipt of necessary regulatory
approvals including the acceptance of the TSX Venture Exchange (the “TSXV”).
Osisko’s participation in the Placement constitutes a “related party transaction” for
the purposes of TSXV policy and Multilateral Instrument 61 -101, Protection of
Minority Security Holders in Special Transactions (“MI 61-101”), and the Company
has relied upon exemptions from the requirements to obtain a formal valuation and
seek minority shareholder approval for the Placement on the basis that the fair
market value of Osisko’s participation in the Placement is less than 25% of the
Company’s current market capitalization.
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
778-588-7145
Terri Anne Welyki
Vice President of Communications
778-238-2333
For more information please phone 778-558-7145, 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 respon sibility 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 Placement and the expected closing and
BRO:TSXV BRKCF:OTCQB
anticipated use of proceeds thereof, the results of the permitting process, the proposed
exploration program on and potential mineralization associated with the Sunnyside project
and the potential relationship between the Sunnyside project and the adjacent Taylor -
Hermosa base metal system. 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 marke ts, 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 indu stry. There are no assurances that the Company
will successfully negotiate and enter into definitive documentation and complete the
Placement on the terms set out herein or at all. All forward-looking information contained in
this news release is qualifie d 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 U NDER 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.