Barkerville receives partial revocation of cease-trade order
Barkerville Gold Mines Ltd. (TSX-V: BGM) has announced that it has received a partial revocation order from the cease-trade order issued by the British Columbia Securities Commission in August.
A trading halt had been granted by the Investment Industry Regulatory Organization of Canada on August 14, with a cease trade order issued August 15 for its failure to file a technical report to support the company's disclosure of its Cow Mountain deposit gold resource.
The partial revocation, issued November 13, is for the sole purpose of allowing the completion of a loan by Frank Callaghan to the company.
Callaghan has been the company's CEO and president since 1991, and is also chairman of its board of directors.
He has agreed to lend the company, as required, a loan or loans up to an aggregate total of $2,441,820, with an annual interest rate of 20%, which will be reduced to 10% providing certain stipulations are met.
The proceeds of the loan are intended to be used for the following:
- cover overhead expenses to sustain the business;
- pay minimum wages, consulting fees and benefits, including past due payroll remittances; and
- cover costs related to a report that is required in accordance with the cease trade order, the National Instrument 43-101 technical report, including accounts payable related to the report.