Barkerville Announces $13.5 Million Bought Deal Private Placement Financing

TORONTO, ONTARIO--(Marketwired - April 4, 2016) -

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Barkerville Gold Mines Ltd. (TSX VENTURE:BGM) ("Barkerville" or the "Company") is pleased to announce that it has entered into an agreement with Haywood Securities Inc., as lead underwriter on behalf of a syndicate of underwriters (collectively, the "Underwriters"), under which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 19,290,000 flow-through shares of the Company (the "Flow-Through Shares") at a price of $0.70 per Flow-Through Share (the "Issue Price") for total gross proceeds of $13,503,000 (the "Offering"). 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.

In consideration for their services, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering, excluding proceeds from certain shareholders of the Company. As additional consideration, the Company has agreed to pay to the Underwriters a number of broker warrants (the "Broker Warrants") equal to 4.0% of the securities issued under the Offering, excluding securities sold to certain shareholders of the Company. Each Broker Warrant is exercisable into one common share for a period of 24 months at a price equal to the Issue Price.