Barksdale Announces C$3.5 Million Strategic Investment by Osisko Gold Royalties
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Barksdale Announces C$3.5 Million Strategic Investment
by Osisko Gold Royalties
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. – December 17, 2018 - Barksdale Capital Corp. (“Barksdale” or
the “Company”) is pleased to announce that the Company has arranged a non -
brokered private placement with Osisko Gold Royalties Ltd. (“Osisko”) to purchase
5,833,333 common shares of the Company (the “Shares”) at a price of C$0.60 per
Share, for a total investment of C$3,500,000 (the “Placement”) . Following the
Placement, Osisko will own approximately 15.2% of the issued and outstanding
common shares of Barksdale on a non -diluted basis. Concurrently with the
Placement, Osisko has also reached an agreement to acquire certain existing royalty
interests over the Sunnyside project from an arm’s length private vendor.
Rick Trotman, CEO of Barksdale, remarked, “I would like to give a warm welcome to
Osisko Gold Royalties, Barksdale’s newest shareholder. This investment is an
important endorsement of the Sunnyside project given Osisko’s successful
investment history in this district with previous exploration groups. We look forward
to building our relationship with Osisko while exploring and advancing the Sunnyside
project, which we believe h osts the extension of the Taylor -Hermosa base metal
system.”
In connection with the Placement, Osisko and Barksdale will negotiate and enter into
a binding investment agreement, the provisions of which will include, inter alia, the
following rights in favor of Osisko for so long as it holds 10% or more of the
outstanding common shares of Barksdale:
• Equity participation right to maintain pro-rata ownership interest, and
• The right to nominate one person to Barksdale’s board of directors.
In connection with the Placement, Osisko will also receive a right of first refusal on
any proposed royalty, streaming, or similar transactions for a period of five years
from the closing date. 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 the execution of
definitive documentation and receipt of necessary regulatory approvals including the
conditional acceptance of the TSX Venture Exchange as well as Osisko closing a
separate acquisition of certain existing royalty interests over the Sunnyside project
from an arm’s length private vendor. The Placement is expected to close on or about
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January 4, 2019. All newly issued securities will be subject to a customary hold period
of four months plus one day.
Medalist Capital Ltd. acted as financial advisor to the Company on the transaction.
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 are
surrounded by some of the world’s largest mining companies.
ON BEHALF OF BARKSDALE CAPITAL CORP
Rick Trotman, President and Chief Executive Officer
For more information please phone 778-558-7145, email
[email protected] or visit www.BarksdaleCapital.com.
Any scientific or technical information contained in this news release has been
approved by Lewis T eal, Barksdale’s project manager and a “qualified person” as
defined by NI 43-101, Standards of Disclosure for Mineral Projects.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Vent ure 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 Placement and the expected closing date and
anticipated use of proceeds thereof and the potential relationship between the Sunnyside
project and the 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 oth er 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 a re 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
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 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 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.
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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 SECUR ITIES 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.