Barksdale Resources receives $1.98 million in debt repayment
Vancouver, British Columbia–(Newsfile Corp. – February 17, 2022) – Barksdale Resources Corp. (TSXV:BRO)(OTCQX:BRKCF)(“Barksdale“or the”Company“) is pleased to announce that Regal Resources Inc. (“Royal“) made a cash payment to Barksdale to fully repay its financial obligations.
In May 2021, Barksdale acquired two Regal secured loans from an arm’s length third party for a purchase price of $1,725,000 (the “Royal debt“), which consisted of $1,000,000 in cash and 1,345,310 common shares of Barksdale valued at $0.54/share. The loans bore interest at 12% per annum and were secured by a general security agreement and pledge over Regal’s assets, including a provision for the reimbursement of all legal costs associated with enforcement actions In total, Regal paid in cash $1,985,899.93 to the Company in full satisfaction of Regal’s debt, including principal, accrued interest and legal fees.
“Barksdale is very pleased to have successfully and profitably disposed of our secured debt investment in Regal. The company’s acquisition of Regal debt was part of a larger effort by Barksdale last summer to acquire Regal and shore up the Sunnyside project in Arizona at a value of $0.37 per Regal share. The company’s offer was later rejected by Regal shareholders. Regal’s new management recently completed a secured debenture financing convertible into Regal units (one share and ½ warrant) at a price of $0.10/unit. At Barksdale, we look forward to an exciting and productive 2022 as we advance our portfolio of projects with the explicit goal of increasing value for our shareholders, which is our sole mission.”
Barksdale and Regal will continue to advance the Sunnyside project under the existing 2017 option agreement. The Company will use the proceeds from Regal’s debt repayment for general corporate purposes and working capital.
Barksdale Resources Corp. is a base metal exploration company headquartered in Vancouver, British Columbia, focused on the acquisition, exploration and advancement of highly prospective base metal projects in North America. North. Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver and San Antonio copper projects, both located in the Patagonia mining district in southern Arizona, as well as the San Javier in central Sonora, Mexico.
ON BEHALF OF BARKSDALE RESOURCES CORP
President, CEO and Director
Terri Anne Welyki
Vice President of Communications
Neither the 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 press release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release contains “forward-looking information” under applicable securities law, including, but not limited to, the Company’s outlook for 2022 and its ability to increase shareholder value, the nature prospective of the company’s mining projects and the proposed use of proceeds from the repayment of the royal debt. This forward-looking information reflects management’s current beliefs and is based on a number of estimates and assumptions made by the Company and on information currently available to it which, although believed to be reasonable, is subject to known risks. and unknowns, uncertainties and other factors that could cause actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that this forward-looking information does not constitute a promise or guarantee and is subject to known and unknown risks and uncertainties, including, but not limited to, delays in obtaining approvals and permits. government or third parties, actual results of exploration activities, geological formations, unanticipated structures and features, environmental risks, future prices of base metals and other metals, operating risks, accidents, labor issues and other risks in the mining industry as well as general business, economic, competitive, political and social uncertainties, uncertain stock and capital market volatility and lack of available capital. There can be no assurance that the Company will be able to successfully advance its portfolio of mining projects, including Sunnyside, San Antonio and San Javier, as currently contemplated or at all. Additionally, there is uncertainty about the spread of COVID-19 and variants of concern and the impact they will have on the Company.‘s operations, supply chains, ability to access mining properties, perform due diligence or procure equipment, contractors and other personnel on a timely or non-timely basis and the activity economy in general. All forward-looking information contained in this press release is qualified by these cautionary statements and those contained in our continuous disclosure documents available on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.