Barkerville Announces Further Extension to Credit Facility and Agreement to Arrange a Board Seat for Lender's Nominee


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PK:BGMZF / TSX.V:BGM
09/02/2014 [ACCESSWIRE]

September 2, 2014 / ACCESSWIRE / Vancouver, BC / Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") is pleased to announce the following.

Extension of Credit Facility

On August 29, 2014, the Company negotiated a second limited one-month extension and waiver in connection with its existing Credit Agreement with 2176423 Ontario Ltd. (the "Lender"), a company controlled by Eric Sprott, during which period parties will continue to review potential loan amendments that might better fit with the Company's business operations going forward. In connection with and in furtherance of the extension, the Lender has agreed to waive any events of default under the Credit Agreement until September 30, 2014. In addition, the Company will increase the size of the Board of Directors by one and the Company and the Lender have agreed that a nominee of the Lender shall fill such position. The Credit Agreement otherwise remains in full force and effect.

The Company is further undertaking to change the composition of the Board of Directors with the view to strengthening the support of the Company's current growth plans and operations, subject to approval at the next Annual General Meeting of the Company.

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

"Norm Anderson"

Norm Anderson

President and CEO

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 |Telephone:604 669-6463     |TSXVenture Exchange    |
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 |Facsimile:604 669-3041     |Trading                |
 |                           |Symbol:“BGM”           |
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 |Toll Free:1-800 663-9688   |FrankfurtStock Exchange|
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 |Web:www.barkervillegold.com|Trading                |
 |                           |Symbol:“IWUB”          |
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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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