Vancouver, British Columbia--(Newsfile Corp. - June 27, 2024) - Barksdale Resources Corp. (TSXV: BRO) ("Barksdale" or the "Company") announces that further to its news releases of June 5, 2024, and June 11, 2024, regarding its non-brokered private placement financing of up to 37,500,000 units (the "Units") at a price of $0.15 per Unit for gross proceeds to the Company of up to $5,625,000 (the "Offering"), it has closed the first tranche ("First Tranche") of the Offering. Under the First Tranche, the Company has issued 27,325,317 Units for gross proceeds of $4,098,798.

Each Unit consists of one common share of Barksdale (a "Common Share") and one Common Share purchase warrant (a "Warrant"), whereby each Warrant entitles the holder to acquire one Common Share at a price of $0.23 for a period of three years from the date of issuance. The expiration date of the Warrants issued in connection with the First Tranche is June 27, 2027.

Proceeds of the Offering will be used to finance exploration activities at the Company's properties in Arizona as well as for working capital and general corporate purposes. Pursuant to the closing of the First Tranche, the Company paid an aggregate of $199,516.60 in cash finder's fees and issued an aggregate of 1,330,111 finder's warrants to the following eligible finders in the amounts noted below:

  • Leede Jones Gable Inc. - $121,660.35 cash and 811,069 finder's warrants;
  • Canaccord Genuity Corp. - $47,787.75 cash and 318,585 finder's warrants;
  • Haywood Securities Inc. - $12,061.00 cash and 80,407 finder's warrants;
  • GloRes Securities Inc. - $10,500 cash and 70,000 finder's warrants;
  • Ventum Financial Corp. - $3,150.00 cash and 21,000 finder's warrants;
  • Cormark Securities Inc. - $1,837.50 cash and 12,250 finder's warrants;
  • Red Cloud Securities Inc. - $1,470.00 cash and 9,800 finder's warrants; and
  • Richardson Wealth Limited - $1,050.00 cash and 7,000 finder's warrants.

Each finder's warrant entitles the holder to acquire one Common Share at a price of $0.23 until June 27, 2027.

All securities issued pursuant to the First Tranche are subject to a statutory hold period expiring October 28, 2027, being the date that is four months and one day from the date of issuance.

Barksdale anticipates closing the second and final tranche of the Offering within the first two weeks of July 2024. Completion of the Offering is subject to TSX Venture Exchange final acceptance.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to available exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any securities in the United States.

Related Party Participation in the Offering

Certain insiders of the Company participated in the First Tranche purchasing an aggregate of 383,450 Units - William Wulftange, Director of the Issuer, purchased 183,450 Units and Terri Anne Welyki, Vice President of Corporate Communications, purchased 200,000 Units. The participation by insiders in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities purchased by insiders, nor the consideration for the securities paid by such insiders, will exceed 25% of the Company's market capitalization. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the First Tranche, which the Company deems reasonable in the circumstances in order to complete the First Tranche in an expeditious manner. The Offering has been unanimously approved by the Company's board of directors.

Barksdale Resources Corp., a 2023 OTCQX BEST 50 Company, is a base metal exploration company headquartered in Vancouver, B.C., that is focused on the acquisition, exploration and advancement of highly prospective base metal projects in North America. Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver project in the Patagonia mining district of southern Arizona, which hosts several significant porphyry copper deposits as well as the adjoining world-class Hermosa carbonate-replacement lead-zinc-silver deposit which is under construction by a major mining company.

ON BEHALF OF BARKSDALE RESOURCES CORP

Rick Trotman
President, CEO and Director
This email address is being protected from spambots. You need JavaScript enabled to view it.

Terri Anne Welyki
Vice President of Communications
778-238-2333
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For more information please phone 778-558-7145, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.BarksdaleResources.com.

Neither 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 release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or" should" occur or be achieved. All statements, other than statements of historical fact, included herein, without limitation, statements relating to closing of the second and final tranche of the Offering, completion of the Offering and TSX Venture Exchange approval thereof, and the use of proceeds from the Offering are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Barksdale, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to obtain necessary approvals, the ability to complete proposed exploration work, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Barksdale does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.

// NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES //

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214697

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