October 3, 2017 – Vancouver, B.C. – Barksdale Capital Corp. (TSX-V: BRO.H) (“Barksdale” or the “Company”) announces that it has increased the size of its private placement financing (the “Financing”) as originally announced on August 15, 2017.
The Financing will now consist of 13,530,000 common shares at a price of $0.40 per share for gross proceeds of $5,412,000. Certain directors, officers and insiders of the Company (collectively the “Insiders”) have agreed to participate in the Financing for an aggregate of 1,225,000 shares for gross proceeds of $490,000.
The net proceeds of the Financing will be used to fund, inter alia, (i) the initial cash payment of $650,000 payable to Regal Resources Inc. upon Exchange acceptance of the Company’s option to acquire up to a 67.5% undivided interest in the 286 unpatented mining lode claims (approximately 5,223.71 acres) comprising the Patagonia/Sunnyside property located in Santa Cruz County, Arizona (the “Sunnyside Property”) as announced on August 15, 2017, (ii) initial exploration programs on the Sunnyside Property and the Company’s previously acquired Swales project in Elko, Nevada (see news release dated December 16, 2016), and (iii) general corporate and working capital purposes. Finder’s fees totaling $129,000 cash and 322,500 finder’s warrants will be payable in connection with the Financing, each finder’s warrant entitling the holder to purchase one common share of the Company at a price of $0.40 for a period of two years after closing.
Closing of the Financing is expected to take place on or about October 5, 2017.
The portion of the Financing with Insiders constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and the Company has relied upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Financing on the basis that the fair market value of the Financing with the Insiders is less than 25% of the Company’s current market capitalization.
All common shares to be issued in connection with the Financing will be subject to a four month hold period.
ABOUT BARKSDALE CAPITAL CORP. – Barksdale Capital Corp. is focused on the acquisition and exploration of highly prospective precious and base metal projects in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
On behalf of the Board of Directors of Barksdale Capital Corp.,
Richard Silas, President and Director
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This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions including, but not limited to, the Financing and intended use of proceeds therefrom. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors affecting the Company include, among others: global financial conditions and volatility of capital markets, uncertainty regarding the availability of capital including the Financing, fluctuations in commodity prices; title matters; risks associated with mineral exploration including the timing and availability of permits, uncertainty surrounding exploration results and environmental issues and the additional risks identified in our filings with Canadian securities regulators on SEDAR. These forward-looking statements are made as of the date hereof and, except as required under applicable law, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
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 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.