Barkerville Gold Announces $13.5-million Bought-deal Private Placement

Barkerville Gold Mines Ltd. (TSXV:BGM) announced that it’s entered into an agreement under which a syndicate of underwriters led by Haywood Securities Inc. will purchase 19,290,000 flow-through shares of the company on a bought-deal private placement basis. The shares will be priced at $0.70 each, and the company will gain gross proceeds of $13,503,000.
As quoted in the press release:

The Underwriters have been granted the option (the “Over-Allotment Option”) to purchase up to an additional 15% of the number of Flow-Through Shares issuable under the Offering, exercisable in whole or in part at any time up to 48 hours prior to the closing of Offering.
The closing of the Offering is expected to occur on or about April 26, 2016 (the “Closing Date”) and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the TSX Venture Exchange.
The proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur Canadian exploration expenses on the Company’s properties in the Province of British Columbia that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) (the “Qualifying Expenditures”). The Qualifying Expenditures will be renounced to the subscribers with an effective date no later than December 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares.

Click here to read the full Barkerville Gold Mines Ltd. (TSXV:BGM) press release.