Barksdale Resources Corp. is pleased to provide an update regarding the secured loans it holds in Regal Resources Inc. As of October 19, 2021, Regal owes Barksdale approximately $ 1.8 million under the secured loans. According to his BIA filings, Regal collectively owes about $ 2.8 million to five creditors, including Barksdale. La Regal has until October 24, 2021 to deposit cash flow …
Barksdale Resources Corp. (“Barksdale” or the “Company”) (TSXV: BRO) (OTCQX: BRKCF) is pleased to provide an update regarding the Secured Loans (“Secured Loans”) it holds in Regal Resources Inc ( “Regal
As part of its offer to consolidate 100% of the Sunnyside project this summer, Barksdale acquired existing secured loans from a former Regal creditor. The secured loans were subject to a pre-existing forbearance agreement which expired on October 2, 2021. Regal failed to make the required payments and on Monday October 4, 2021, Barksdale sent Regal a notice of default regarding the secured loans as well as a Notice of Intent to Enforce Security. On October 14, 2021, Regal filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Law (“BIA“).
As of October 19, 2021, Regal owed Barksdale approximately $ 1.8 million under the secured loans. According to his BIA filings, Regal collectively owes about $ 2.8 million to five creditors, including Barksdale. Regal has until October 24, 2021 to file a cash flow forecast which must be reviewed and signed by its proposal trustee. By November 13, 2021, Regal must file a proposal with its creditors, seek an extension in court, or seek other relief.
If Regal is unable to repay its creditors or does not present a proposal accepted by the creditors, it will go into bankruptcy. If this happens, a trustee will take possession and control of Regal’s assets and the secured creditors will be able to realize on their security interest. The trustee, or secured creditors, could then initiate a liquidation process to sell Regal’s assets in order to pay off the creditors.
Despite Regal’s filing under the BIA, Barksdale’s 51% stake in Arizona Standard LLC, the joint venture that owns 100% of Sunnyside, is secured. In addition, the option agreement that Barksdale (through its US subsidiary) entered into with the US subsidiary of Regal remains in full force. If Regal’s assets are sold and Barksdale is not the party buying them, Barksdale will simply have a new JV partner in Sunnyside. The joint venture agreement would not be affected by a liquidation process. If the assets of Regal are sold and Barksdale is the acquirer, Barksdale would simply own 100% of the assets of Sunnyside. Conversely, if Regal repays the secured loans, the Sunnyside joint venture will go ahead under the existing structure.
If you have any further questions, please contact the company using the contact details at the end of this press release.
Barksdale Resources Corp. is a base metals exploration company based in Vancouver, British Columbia, focused on the acquisition, exploration and advancement of high potential base metals projects in North America. Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver and copper projects, both located in the Patagonia mining district in southern Arizona, as well as the San Javier copper-gold project in central Sonora, Mexico.
ON BEHALF OF Barksdale Resources CORP
President, CEO and Director
Terri Anne Welyki
Vice President of Communications
For more information, please call 778-238-2333, email [email protected] or visit www.BarksdaleResources.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION: This press release includes “forward-looking information” under applicable securities laws, including, but not limited to, the company’s plans for the continued advancement of the project. Sunnyside and the use of funds after the Regal loan repayment. This forward-looking information reflects the current beliefs of management and is based on a number of estimates and assumptions made by the Company and on information currently available to the Company which, although considered reasonable, is subject to risks. known and unknown, uncertainties and other factors that could cause actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that this forward-looking information is neither a promise nor a guarantee, and is subject to known and unknown risks and uncertainties, including, but not limited to, delays in obtaining approvals and government or third party permits, actual results of exploration activities, geological formations, unforeseen structures and characteristics, environmental risks, future prices of base metals and other metals, operational risks, accidents, labor issues and other risks in the mining industry as well as business, economic, competitive, political and social uncertainties, and volatility in equity and capital markets and lack of available capital. There can be no assurance that any existing indebtedness owed to the Company by Regal will be repaid on a timely basis in accordance with the terms thereof or at all. In addition, there is uncertainty about the spread of COVID-19 and variants of concern and the impact they will have on Society.‘s operations, supply chains, ability to access mining properties, perform due diligence or acquire equipment, contractors and other personnel on a timely basis or not at all and economic activity in general. All forward-looking information contained in this press release is accompanied by these cautions and those in our continuous disclosure documents available on SEDAR at www.sedar.com. Therefore, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
THE SOURCE: Barksdale Resources Corp.
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