Tuesday, January 1, 2013

BGM.v Barkerville Gold

So now that we know how the company is going to keep the doors open we have to ask ourselves if we are happy about it.

Vancouver, BC -- Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") is pleased to announce that it has now completed its previously disclosed secured loan agreement with Mr. Frank Callaghan (the "Lender") in accordance with the terms of that certain partial revocation order (the "PRO") that was issued by the British Columbia Securities Commission (the "BCSC") on November 13, 2012. Pursuant to the secured loan agreement, the Lender has now agreed to advance, from time to time as it may determine and by way of a loan or loans (collectively, the "Loan") to the Company, the aggregate principal sum of up to $2,441,820 (the "Principal Sum"), and which Principal Sum shall bear interest commencing on the date of any such Loan at the simple interest rate of 20% per annum with all such interest to be payable in full to the Lender on repayment of the Principal Sum which shall be at or before 5:00 p.m. (Vancouver time) on the date which is six months from the date of any such Loan. The interest rate shall be reduced to 10% after one year should any Loan remain outstanding for a period of one year from the date of advancement. As security for the due and punctual repayment of the Principal Sum and any interest thereon, the Company has agreed to provide the Lender with a duly executed debenture, security agreement and such other security documentation as may be required by the Lender and its counsel, acting reasonably.

Should this be allowed to take place? 20% is pretty steep. I suspect there will be cries of foul play here. And here is cry 1: www.stockwatch.com/News/Item

In brief it's alleged that Frank ran the company into troubled waters and I take it they contend this was deliberate so he could lend money at a stiff interest. The plaintiff wants to do a pp at $1 a share! Um, if the resource is as good as I think it is the PP should be at $1.50 minimum.

The appearance and disappearance of directors and CEO for the timely NR and filings that got the company suspended are suspicious. One can wonder what really went on and if this was planned.

As we can see from the news releases the company is confidently pushing ahead. Tailings dams are being readied for inspection and contracts have been awarded. From the outside all seems good. I'm not so certain this is true of the inside. I don't think the power struggle is over by any means. I do not think BGM will be wiped out as some have stated or asked. Clearly there is money waiting to get in. In fact, the money is petitioning the courts to get in. If they raised their offer to a fair level they might be able to make a case.

This year should be very entertaining. Sorry to say this to the naysayers but just because there's a control battle going on does not mean the deposit vanished. Frank might run off with some bars lol but he'll have to dig them up first!

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