Barksdale closes $4.99-million private placement

Executive Summary

• Barksdale Resources Corp. has closed a private placement of 55,545,744 units for gross proceeds of approximately $5 million to fund exploration at the Sunnyside project and cover corporate expenses.
• The transaction includes significant finder’s fees and advisory fees paid in equity, and involves related party transactions by company insiders.
• A separate, concurrent private placement from strategic investor Crescat Capital LLC for approximately $932,585 is also planned.

Key Details

• Private Placement Closing: Closed offering of 55,545,744 units at $0.09 per unit.
• Gross Proceeds: $4,999,117.
• Unit Structure: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant allows purchase of one common share at an exercise price of $0.15 until February 19, 2028.
• Use of Proceeds:
  • Completion of Phase II drill campaign at the Sunnyside project.
  • Phase II earn-in payment to Great Basin Metals Inc.
  • Continuing corporate expenses.
  • Geochemical and/or geophysical projects for Sunnyside and San Javier projects.
• Finder’s Fees:
  • Medalist Capital Advisors Inc. received a 6% commission paid in 1,434,780 finders' units.
  • Medalist Capital Ltd. (affiliate) received an advisory fee paid in 1.56 million units.
  • Deemed value of finder/adviser units: $0.09 per unit.
  • Finder/adviser warrants have identical terms to investor warrants ($0.15 exercise price, expiring Feb 19, 2028).
• Statutory Hold Period: All securities are subject to a hold period expiring June 20, 2026 (four months and one day from issuance).
• Regulatory Status: Subject to final acceptance by the TSX Venture Exchange.
• Related Party Transactions:
  • Insiders participated in the offering.
  • Exempt from formal valuation and minority shareholder approval under MI 61-101 as the transaction value does not exceed 25% of market capitalization.
  • No material change report filed 21 days prior to closing.
  • Unanimously approved by the Board of Directors.
• Concurrent Financing (Crescat Capital LLC):
  • Plans to raise $932,585 via private placement.
  • Issuance of 8,478,049 investor units at $0.11 per unit.
  • Investor units consist of one common share and one-half of one warrant.
  • Investor warrants allow purchase of one common share at $0.15 for two years following closing.
  • Subject to exchange acceptance.

Notable Quotes

• None provided in the text.