Barkerville Announces Management Changes and Extended Credit Facility


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PK:BGMZF / TSX.V:BGM
07/29/2014 [ACCESSWIRE]

Vancouver, British Columbia / ACCESSWIRE / July 29 2014 / Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") announced the following:

Management changes

The Company reports, having recently received the written resignation of Frank Callaghan, that Norman Anderson, the Company's current Chairman, has been appointed the interim President and Chief Executive Officer of the Company. Mr. Callaghan remains a director of the Company.

Mr. Anderson has been a director of the Company since June 2012 and he has worked as a mining engineer and as a registered Professional Engineer. He spent 35 years with Cominco, now Teck Resources (TSX, NYSE), during which time he spent a four-year period in an executive position with Amax Lead Zinc Inc. In 1978, he became President and Chief Operating Officer of Cominco, and in 1980 he assumed complete responsibility for Cominco's business as Chairman and Chief Executive Officer. Mr. Anderson left the Chairman and Chief Executive Officer position of Cominco in 1986. During his career Mr. Anderson has also served: as Chairman and director of International Corona Corporation, having held that position when it merged with Homestake Mining Company; as Chairman and director of Hudbay Minerals Inc. (TSX, NYSE) (December 2004-March 2009); and as a director of Cia de Minas Buenaventura in Peru (NYSE) (February 1995-March 2011) and Anatolia Mineral Development Ltd. (TSX) (January 2004-April 2008).

Mr. Callaghan had been the President, Chief Executive Officer and a director of the Company since February 1991 and in 1994 led the Company into its first acquisition into the Cariboo Gold Project. During the following 20 years the Company assembled a 1,164 km2 tenure encompassing most of the Cariboo Gold Belt which included seven past producing gold mines and over 101 placer producing rivers and creeks including Williams Creek, which led to the famous Barkerville Gold rush.

Some of the many notable achievements Mr. Callaghan accomplished for the Company were:

  • -Built a world class land tenure over a 20 year period in a mining camp with in excess of 150 years of continuous mining history;

    -Initiated the Company's relationship with the Lhtako Dene Nation, and personally led the engagement with the Lhtako over the past two decades;

    -Jointly established with the Federal and Provincial governments, and in particular the Ministry of Energy & Mines, the Cariboo Mine Development Review Committee in 1996 to permit a proposed open pit mine on Cow Mountain;

    -Led the development of a historic open pitable resource target on Cow Mountain in 1997;

    -Led the discovery of the Bonanza Ledge gold deposit in March 2000;

    -Advanced the historic Gold Quartz Mine resource on Cow Mountain to an NI 43-101 resource in 2006;

    -Guided the Pre-Feasibility Study for Bonanza Ledge completed in 2009;

    -Acquired the QR Mine and Mill and recommenced underground gold mining operations in 2010 to fund the acquisition;

    -Led the Company through the 11 year Bonanza Ledge Mine permit process which was ultimately achieved in December, 2011;

    -In early 2011, with the Bonanza Ledge permit process nearing completion, Mr. Callaghan refocused the Company's exploration efforts towards expanding the Cow Mountain NI 43-101 resource estimate and later in the year completed the acquisition of the Gold Quartz Mine property on Cow Mountain and its related Net Smelter Royalty and Net Profit Royalty;

    -Led the Company through a 14 month securities commission review surrounding a June, 2012 Cow Mountain resource estimate announcement;

    -Led the Company to ultimately release an NI 43-101 resource estimate on Cow Mountain which included an indicated resource of 1.04 million ounces gold and an inferred resource of 3.94 million ounces gold. The technical report provided exploration target potentials of six to 21 million ounces of gold on Island Mountain and 3-6 million ounces gold on Barkerville Mountain (see News Release dated June 18, 2013);

    -Commissioned Snowden Mining Industry Consultants Inc. to provide an update to the Company's Technical Report and resource estimate in July 2014; and

    -Commenced mining operations at the Bonanza Ledge Mine which he led from discovery to ultimate production with the first Bonanza Ledge gold bar being poured in July 2014.

Mr. Callaghan stated "It has been my honour to work with wonderful exploration and administrative staff over the past 23 years. Since first optioning an interest in the Cariboo Gold Project in 1994, it has been my stated goal to bring this camp back into production for the benefit of not just Barkerville shareholders, but for stakeholders in the region and for the Province of British Columbia. Barkerville Gold Mines has entered a new phase as a producer and with what I believe are world class assets to be developed at Cow, Island and Barkerville mountains, I feel now is the appropriate time to bring in an executive management team that can lead the Company through what could be a much larger development."

"On behalf of the Company and our Board, we are extremely appreciative of the many years of selfless hard work and care that Frank brought to his everyday life as Barkerville's leader. As the Company's founder he will be responsible for our Company's many successes to come", stated Norm Anderson.

The Board's Nominating and Corporate Governance Search Committee has recently retained the services of a professional advisor to assist the Company in the process of identifying and retaining a full-time President and Chief Executive Officer. The Company would expect to be in a position to consider a successful candidate by early this fall.

The Company also reports that the Board of Directors has recently appointed Greg Sparks as the Company's contract Chief Operating Officer. Mr. Sparks is a registered Professional Engineer and a Qualified Person (QP) under NI 43-101 and will be responsible for supervising the Company's day-to-day mining and milling at the Bonanza Ledge and QR mill.

Extended Credit Facility

Contemporaneously with the said management changes, the Company has also negotiated a limited one-month extension and waiver in connection with its existing Credit Agreement with 2176423 Ontario Ltd. (the "Lender"). In connection with and in furtherance of the extension, the Lender has agreed to waive any events of default under the Credit Agreement until August 30, 2014. During that time period the parties will be reviewing potential loan amendments that might better fit with the Company's business operations going forward. The Credit Agreement otherwise remains in full force and effect.

The Board would like to thank its shareholders for their ongoing support.

"Norm Anderson"

Norm Anderson

President and CEO

About Barkerville Gold Mines Ltd.

Since the mid-1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures cover 1,164 km2 along a strike length of 60 km and approximate width of 20 km, including the Cariboo Gold Project, the Bonanza Ledge Gold Project, the Barkerville Mountain and Island Mountain exploration targets and seven past producing hard rock mines. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 km by highway and all-weather road from the Barkerville Gold Camp. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. The Company has completed significant drilling and exploration programs and, together with the historical data, is compiling all information to determine the geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects. This news release has been prepared on behalf of the Board of Directors of the Company which takes full responsibility for its contents.

Cautionary Statement on Forward-Looking Information

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSXV. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. 

SOURCE: Barkerville Gold Mines Ltd.  

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