Barkerville Gold Mines Ltd.: Enters into Settlement Agreement
TORONTO, ON / TheNewswire / September 2, 2015 - Barkerville Gold Mines Ltd. (TSXV: BGM) ("BGM" or the "Company") announces that it has entered into a settlement agreement (the "Settlement Agreement") with Istana Investments Ltd. ("Istana").
Pursuant to an option agreement dated September 12, 2000, between Istana and Golden Cariboo Exploration Ltd. ("Golden Cariboo"), which agreement and the rights and obligations thereunder were assigned to the Company, Golden Cariboo acquired certain mineral claims which now comprise a part of the Company's Grouse Property. Under the terms of the option agreement, Golden Cariboo had agreed to pay Istana annual advance royalty payments of $50,000 commencing in September, 2010, of which, royalty payments in the amount of $225,000 are currently outstanding.
Under the terms of the Settlement Agreement, the Company agreed to pay Istana a cash payment in the amount of $150,000 and issue an aggregate of 800,000 common shares of the Company in settlement of the outstanding advance royalty payments and to relieve BGM of the obligation to make any future advance royalty payments. Istana will continue to retain a 3% net smelter return royalty (the "NSR") on the mineral claims and BGM shall have the right to purchase one-half of the NSR from gold and silver and two-thirds of the NSR on base metals and other minerals for $1,500,000 on or prior to commencement of commercial production.
The settlement remains subject to final approval of the TSX Venture Exchange and the common shares issuable thereunder will be subject to a statutory hold period of four months and one day from the date of issuance.
For further information on Barkerville Gold Mines Ltd., please contact:
Tom Obradovich
President & Chief Executive Officer
(416) 361-2511
tobradovich@barkervillegold.com
Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange ("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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. 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, other than as required by law.
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