Business
Barksdale Announces C$3.5 Million Strategic Investment by Osisko Gold Royalties
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED ...
About this update from Barksdale Resources Corp.
[{"type":"text","content":"Barksdale Announces C$3.5 Million Strategic Investment by Osisko Gold RoyaltiesNOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, B.C. / ACCESSWIRE / December 17, 2018 / Barksdale Capital Corp. (\"Barksdale\" or the \"Company\") is pleased to announce that the Company has arranged a non-brokered private placement with Osisko Gold Royalties Ltd. (\"Osisko\") to purchase 5,833,333 common shares of the Company (the \"Shares\") at a price of C$0.60 per Share, for a total investment of C$3,500,000 (the \"Placement\"). Following the Placement, Osisko will own approximately 15.2% of the issued and outstanding common shares of Barksdale on a non-diluted basis. Concurrently with the Placement, Osisko has also reached an agreement to acquire certain existing royalty interests over the Sunnyside project from an arm's length private vendor.Rick Trotman, CEO of Barksdale, remarked, \"I would like to give a warm welcome to Osisko Gold Royalties, Barksdale's newest shareholder. This investment is an important endorsement of the Sunnyside project given Osisko's successful investment history in this district with previous exploration groups. We look forward to building our relationship with Osisko while exploring and advancing the Sunnyside project, which we believe hosts the extension of the Taylor-Hermosa base metal system.\"In connection with the Placement, Osisko and Barksdale will negotiate and enter into a binding investment agreement, the provisions of which will include, inter alia, the following rights in favor of Osisko for so long as it holds 10% or more of the outstanding common shares of Barksdale: Equity participation right to maintain pro-rata ownership interest, and The right to nominate one person to Barksdale's board of directors. In connection with the Placement, Osisko will also receive a right of first refusal on any proposed royalty, streaming, or similar transactions for a period of five years from the closing date. The net proceeds from the Placement will be used to advance the Company's mineral projects, including the Sunnyside project, and for general corporate and working capital purposes. The Placement is subject to the execution of definitive documentation and receipt of necessary regulatory approvals including the conditional acceptance of the TSX Venture Exc...