Barksdale Resources reports C$13.2M tranche and debt settlement
The non-brokered placement issued 73.2 million units at C$0.18, while a separate transaction settled secured debentures with Delbrook funds.
Mara Quinlan
Barksdale Resources Corp. CVEBRO OTCMKTSBRKCF said on Thursday, Oct. 8 it closed the first tranche of a non-brokered private placement for C$13,179,020 and completed a secured debt settlement. Together, the two transactions issued about 118.4 million common shares before any warrant exercises, including 45.2 million to extinguish debentures.
Shares of CVEBRO closed unchanged at C$0.29 at 4 p.m. EDT on Oct. 8 in Toronto, when Google Finance showed 234.87 million shares outstanding. The newly issued shares amount to roughly half that quoted share count.
Barksdale sold 73,216,777 units at C$0.18 apiece. The unit price was about 38 per cent below the CVEBRO close of C$0.29 at 4 p.m. EDT on Oct. 8 in Toronto.
The company also issued 40 million shares and 5,208,333 units to two Delbrook funds to settle C$5,437,500 of secured debenture obligations and related rights. Barksdale expects the second and final financing tranche, including Crescat's participation, to close in mid-October 2026.
"The Debt Settlement eliminates all significant debt from the Company's balance sheet," Barksdale said in Thursday's release.
The Sept. 22 financing plan aimed to raise up to C$14 million. Each unit carries one share and half a warrant, with whole warrants exercisable at C$0.30 until Oct. 8, 2028.
Crescat Portfolio Management LLC holds a right to subscribe on those terms to maintain its ownership stake.
Barksdale plans to put the net proceeds toward a phased 16,000-metre diamond core drilling program at the Sunnyside project in southern Arizona, in which it holds a 67.5 per cent interest. The initial 8,000 metres, planned to start in fall 2026, will follow up on earlier drilling as the company works toward an initial mineral resource. Drilling will also test ground west of the porphyry deposit around historic mines.
The program includes a ZTEM survey over Sunnyside and the company's Four Metals property. Barksdale explores for base and precious metals in North America, with additional copper and gold projects in Arizona and Mexico.
Insiders bought 13,164,089 units for C$2,369,536 in the Oct. 8 first tranche. Chair George Ogilvie, who led the financing, took 4,167,000 of those units, while chief executive Chris Stewart bought 556,000. Barksdale said it is relying on exemptions from minority approval and formal valuation requirements under MI 61-101 for the insider participation.
The shares and units issued on Oct. 8 carry a statutory hold period expiring Feb. 9, 2027. If all warrants attached to those units were exercised, they would add about 39.2 million shares; the exercise price is C$0.30.
Barksdale expects to close the second and final tranche, including Crescat's participation, in mid-October 2026.
