09:23:28 EDT Sat 29 Apr 2017
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Barkerville Gold Mines Ltd
Symbol C : BGM
Shares Issued 126,634,706
Close 2014-07-28 C$ 0.47
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Barkerville's Callaghan resigns as president, CEO

2014-07-29 09:16 ET - News Release

Mr. Norman Anderson reports

BARKERVILLE ANNOUNCES MANAGEMENT CHANGES AND EXTENDED CREDIT FACILITY

Barkerville Gold Mines Ltd. is providing an update on management changes and its credit facility.

Management changes

The company reports, having recently received the written resignation of Frank Callaghan, that Norman Anderson, the company's current chairman, has been appointed the interim president and chief executive officer of the company. Mr. Callaghan remains a director of the company.

Mr. Anderson has been a director of the company since June, 2012, and he has worked as a mining engineer and as a registered professional engineer. He spent 35 years with Cominco, now Teck Resources, during which time he spent a four-year period in an executive position with Amax Lead Zinc Inc. In 1978, he became president and chief operating officer of Cominco, and in 1980 he assumed complete responsibility for Cominco's business as chairman and chief executive officer. Mr. Anderson left the chairman and chief executive officer position of Cominco in 1986. During his career, Mr. Anderson has also served: as chairman and director of International Corona Corp., having held that position when it merged with Homestake Mining Company; as chairman and director of Hudbay Minerals Inc. (December, 2004, to March, 2009); and as a director of Cia de Minas Buenaventura in Peru (February, 1995, to March, 2011) and Anatolia Mineral Development Ltd. (January, 2004, to April, 2008).

Mr. Callaghan had been the president, chief executive officer and a director of the company since February, 1991, and in 1994 led the company into its first acquisition into the Cariboo gold project. During the following 20 years, the company assembled a 1,164-square-kilometre tenure encompassing most of the Cariboo gold belt, which included seven past-producing gold mines, and over 101 placer-producing rivers and creeks, including Williams Creek, which led to the famous Barkerville gold rush.

Some of the many notable achievements Mr. Callaghan accomplished for the company:

  • Built a world-class land tenure over a 20-year period in a mining camp with in excess of 150 years of continuous mining history;
  • Initiated the company's relationship with the Lhtako Dene Nation and personally led the engagement with the Lhtako over the past two decades;
  • Jointly established with the federal and provincial governments, and in particular the Ministry of Energy & Mines, the Cariboo Mine Development Review Committee in 1996 to permit a proposed open-pit mine on Cow Mountain;
  • Led the development of a historic, open-pittable resource target on Cow Mountain in 1997;
  • Led the discovery of the Bonanza Ledge gold deposit in March, 2000;
  • Advanced the historic Gold Quartz mine resource on Cow Mountain to a National Instrument 43-101 resource in 2006;
  • Guided the prefeasibility study for Bonanza Ledge completed in 2009;
  • Acquired the QR mine and mill, and recommenced underground gold mining operations in 2010 to finance the acquisition;
  • Led the company through the 11-year Bonanza Ledge mine permit process, which was ultimately achieved in December, 2011;
  • In early 2011, with the Bonanza Ledge permit process nearing completion, refocused the company's exploration efforts toward expanding the Cow Mountain NI 43-101 resource estimate, and later in the year completed the acquisition of the Gold Quartz mine property on Cow Mountain, and its related net smelter royalty and net profit royalty;
  • Led the company through a 14-month securities commission review surrounding a June, 2012, Cow Mountain resource estimate announcement;
  • Led the company to ultimately release an NI 43-101 resource estimate on Cow Mountain, which included an indicated resource of 1.04 million ounces of gold and an inferred resource of 3.94 million ounces of gold. The technical report provided exploration target potentials of six million to 21 million ounces of gold on Island Mountain and three million to six million ounces of gold on Barkerville Mountain (see news release dated June 18, 2013);
  • Commissioned Snowden Mining Industry Consultants Inc. to provide an update to the company's technical report and resource estimate in July, 2014;
  • Commenced mining operations at the Bonanza Ledge mine, which he led from discovery to ultimate production with the first Bonanza Ledge gold bar being poured in July, 2014.

Mr. Callaghan stated: "It has been my honour to work with wonderful exploration and administrative staff over the past 23 years. Since first optioning an interest in the Cariboo gold project in 1994, it has been my stated goal to bring this camp back into production for the benefit of not just Barkerville shareholders, but for stakeholders in the region and for the province of British Columbia. Barkerville Gold Mines has entered a new phase as a producer, and with what I believe are world-class assets to be developed at Cow, Island and Barkerville Mountains, I feel now is the appropriate time to bring in an executive management team that can lead the company through what could be a much larger development."

"On behalf of the company and our board, we are extremely appreciative of the many years of selfless hard work and care that Frank brought to his everyday life as Barkerville's leader. As the company's founder, he will be responsible for our company's many successes to come," stated Mr. Anderson.

The board's nominating and corporate governance search committee has recently retained the services of a professional adviser to assist the company in the process of identifying and retaining a full-time president and chief executive officer. The company would expect to be in a position to consider a successful candidate by early this fall.

The company also reports that the board of directors has recently appointed Greg Sparks as the company's contract chief operating officer. Mr. Sparks is a registered professional engineer and a qualified person (QP) under NI 43-101, and will be responsible for supervising the company's day-to-day mining and milling at the Bonanza Ledge and QR mill.

Extended credit facility

Contemporaneously with the said management changes, the company has also negotiated a limited one-month extension and waiver in connection with its existing credit agreement with 2176423 Ontario Ltd. In connection with and in furtherance of the extension, the lender has agreed to waive any events of default under the credit agreement until Aug. 30, 2014. During that time period, the parties will be reviewing potential loan amendments that might better fit with the company's business operations going forward. The credit agreement otherwise remains in full force and effect.

The board would like to thank its shareholders for their continuing support.

We seek Safe Harbor.

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