Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Barkerville Gold Mines Ltd. (TSX-V: BGM) announced on Thursday that it has received a partial revocation of the cease-trade order issued by the British Columbia Securities Commission August 14.
Barkerville was ordered to cease trading after its failure to file a technical report in the form required with regard to its Cow Mountain deposit gold resource.
The partial revocation is for the sole purpose of allowing the completion of a loan by Frank Callaghan (pictured) to the company according to a press release. Callaghan has been the company’s CEO and president since 1991, and is also chairman of its board of directors.
Callaghan has agreed to loans of up to a total of $2.44 million, with an annual interest rate of 20%, which will be reduced to 10% providing certain stipulations are met.
The proceeds of the loan will be used to the cover costs of the National Instrument 43-101 technical report, business overhead and to pay outstanding salaries and consulting fees.
The company says it hopes to have a new compliant 43-101 ready in “one to two months” so that the cease-trade order can be lifted entirely.
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