March 1, 2018 – Vancouver, B.C. – Barksdale Capital Corp. (TSX-V: BRO) (“Barksdale” or the “Company”) is pleased to announce that it has entered into a binding letter agreement to acquire, by way of option (the “Option”), a 100% undivided interest in the Four Metals property (“Four Metals”) located in Santa Cruz County, Arizona.
Rick Trotman, Barksdale’s President and CEO commented: “Four Metals is a strategic acquisition that further expands Barksdale’s holdings within the Patagonia Mountains. As we continue to advance our flagship Sunnyside property to drill-ready status the team at Barksdale will continue to add value for our shareholders by further consolidating this world-class base metal district.”
Figure 1. Barksdale's properties in Santa Cruz County, Arizona
Four Metals consists of a contiguous block of 40 unpatented lode claims (804 acres) located approximately 3km south of Sunnyside (Figure 1). The property is an exploration stage asset that has seen episodic periods of small scale copper mining (1860’s – 1920’s) along with successive periods of exploration drilling (1920’s to early 2010’s). Previous underground and surface exploration drilling has outlined a copper-molybdenum deposit, hosted within a mineralized breccia pipe, which has been tested from surface to approximately 180 meters depth and remains open in multiple directions.
All the unpatented load claims at both Four Metals and Sunnyside are located on public lands administered by the US Forest Service.
To exercise the Option and acquire 100% ownership of Four Metals, Barksdale must make option payments totaling US$450,000 (the “Option Payments”) to MinQuest Ltd (“Minquest”) in cash and common shares of Barksdale (based on the market price of the Company’s shares at the time of issue) over a period of five years as follows:
|Portion of Option
Payment Payable in Cash
|Portion of Option
Payment Payable in Shares
|Upon execution of formal Option Agreement||US$25,000||US$25,000||N/A|
|First anniversary of Option Agreement||US$50,000||US$25,000||US$25,000|
|Second anniversary of Option Agreement||US$50,000||US$25,000||US$25,000|
|Third anniversary of Option Agreement||US$50,000||US$25,000||US$25,000|
|Fourth anniversary of Option Agreement||US$50,000||US$25,000||US$25,000|
|Fifth anniversary of Option Agreement||US$225,000||US$100,000||US$125,000|
Scroll to the right to see the table data.
In addition, Barksdale has agreed to reimburse MinQuest for certain 2017/2018 land holding costs on Four Metals in the aggregate amount of US$6,215.
The Option is subject to the Company completing a satisfactory confirmation due diligence and title review of Four Metals and acceptance of the TSX Venture Exchange. Execution of a formal option agreement and closing of the transaction is scheduled to take place on or about March 15, 2018.
Lewis Teal, Barksdale’s project manager and a “qualified person” as defined by NI 43-101, Standards of Disclosure for Mineral Projects is responsible for approving the scientific and technical information regarding Four Metals contained in this news release.
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.,
President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Trotman, President and Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking information” under applicable Canadian securities legislation including, but not limited to, the expected closing date for the Option and the Company’s initial plans for Four Metals. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. 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.