Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") announces that it has entered into letter agreements dated December 7, 2010 (the "Agreements") with Winta Resources Ltd., Bumper Development Corporation Ltd. and Kristen Snethun (collectively the "Royalty Holders") to purchase a collective 10% net profit interest royalty (the "Royalty") that is held by the Royalty Holders in the Cariboo Gold Quartz, Island Mountain and Mosquito Creek properties of the Company which are located in the Cariboo Mining Division of British Columbia (the "Acquisition"). Pursuant to the Agreements, the Company will issue an aggregate of 250,000 shares to the Royalty Holders for the purchase of the Royalty.
The Acquisition will be subject to certain conditions including TSX Venture Exchange approval.
About Barkerville Gold Mines Ltd.
The Company has been focused on exploration and development of gold projects in the Cariboo Mining District in central British Columbia since 1994. The Company's mineral tenures now cover over 1,225 square kilometers of mineral tenures encompassing 7 past producing hard rock mines and three NI43-101 gold deposits, including the QR Mine & Mill. The QR Mine & Mill was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in February and the Company began pouring dore gold in September of 2010. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. and plans to relocate it to the gold deposits in the Barkerville Gold Camp near Wells, B.C. and upgrade it to a 2,000-tonne/day facility subject to all approvals. The Company has not hedged any of its future gold production.
On behalf of the Board of Directors
