Barksdale arranges $5-million private placement

Executive Summary

• Barksdale Resources Corp. announced a $5 million private placement of up to 55,555,555 units at $0.09 per unit to fund Phase 2 drilling at the Sunnyside project and achieve 67.5% ownership.
• The company appointed Christina McCarthy as an independent board member, citing her geological and capital markets expertise to support strategic exploration and financing efforts.
• Phase 2 drilling at the Sunnyside project in Arizona is scheduled to begin in February, involving 25,000 feet of drilling to test mineralization extensions and geochemical anomalies, which is a prerequisite for advancing ownership stakes.

Key Details

• Financing Structure:
  • Gross proceeds: Approximately $5 million.
  • Units offered: Up to 55,555,555 common share units.
  • Price: $0.09 per unit.
  • Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Exercisable at $0.15 per share for a period of two years following closing.
  • Finder’s Fee: Medalist Capital Advisors Inc. receives a 6% commission payable in units (deemed price $0.09/share) with one-half warrant per unit (exercise price $0.15).
• Use of Proceeds:
  • Completion of the Phase 2 drill campaign at the Sunnyside project.
  • Phase 2 earn-in payment to Great Basin Metals Inc.
  • Continuing corporate expenses.
  • Financing geochemical and/or geophysical projects for Sunnyside and San Javier projects.
• Board Appointment:
  • Christina McCarthy appointed as independent board member.
  • Background: Geologist with 18+ years in resource capital markets; former CEO of Paycore Minerals (acquired by i-80 Gold); former VP of Corporate Development at New Oroperu Resources; experience at McEwen Mining, Euro Pacific, and Haywood Securities.
• Sunnyside Project (Arizona) Phase 2 Drilling:
  • Contractor: Alford Drilling (Elko, Nev.).
  • Scope: 25,000 feet (7,620 meters).
  • Objective: Complete Phase 2 earn-in requirements to advance to 67.5% ownership.
  • Targets:
    • Near-surface chalcocite (Cu ± Au) mineralization recommended by Asarco in the 1990s.
    • Structural extensions of the World's Fair mine (Ag, Au, Pb, Cu).
    • Resistivity targets northwest of the former Trench mine.
    • Copper-molybdenum, silver-gold, and zinc anomalies identified by 2019 fracture geochemical studies.
  • Schedule: Begins in February; duration of two to three months.

Notable Quotes

• "Barksdale is truly grateful for the strong support of our shareholders as we move into the new year," said Barksdale chief executive officer William Wulftange. "Following completion of the phase 2 drill program and achieving 67.5-per-cent ownership of the Sunnyside project, Barksdale will return our focus to testing and defining the extension(s) of the Peake deposit onto the Sunnyside property."
• "We are thrilled to have Christina join our board in conjunction with this financing to complete the phase 2 drilling program at our flagship Sunnyside project," said board chair Darren Blasutti. "Her extensive background in exploration and capital markets will assist the board as it navigates the company's numerous strategic options and vast exploration upside beyond the 67.5-per-cent ownership goal of the Sunnyside project expected later this year."