Barksdale Resources Corp. (TSXV: BRO) (OTCQX: BRKCF) (“Barksdale” or the “Company”) is pleased to announce the latest legal matters relating to its Sunnyside Copper-Lead-Zinc-Silver exploration project in Arizona. We provide information.
President and CEO Rick Trotman said, “We endorse the excellent work that the Barksdale and USFS teams have completed at Sunnyside during the four-year intensive permitting process. is very robust and comprehensive, which guarantees protection.” “We contribute to environmental conservation while meeting community needs and national strategic priorities. We will continue to work with all parties to bring it to the United States.”
Background
Over the past six weeks, we’ve made significant progress with permits at our Sunnyside project in Arizona. US Forest Service (“USFS“) completed its environmental assessment in January 2023 and issued a decision memorandum and no-significant-impact findings on June 16, 2023. These decisions, as well as two Arizona permits and an Army Engineer Soldiers’ approval, these are the major permitting milestones required for Sunnyside’s advance.
On June 20, 2023, a lawsuit was filed in the United States District Court for the District of Arizona (“USDcourt“) Opposition to USFS by various non-profit environmental groups (“plaintiff“) seeks to override recently issued decisions by the USFS relating to our Sunnyside Project (Environmental Assessment, Determination Memorandum, No Significant Impact Investigation) and Neighboring Project Decisions (Notice of Decision), which is also an exploration-stage project, located in the Patagonian Mountains of southern Arizona.
In connection with the Sunnyside Project, plaintiffs’ complaint alleges that USFS relates to the cumulative impacts of various exploration and mining projects in the area, potential impacts on various wildlife species, and groundwater baseline conditions. He claims that he made certain errors in his analysis. means. Barksdale believes the plaintiffs’ allegations are baseless and that the four-and-a-half-year licensing process was intensive and comprehensive.
Attorney involvement
Although not directly named in the lawsuit, Barksdale is working to ensure that its interests are protected. Therefore, we employ attorneys. Barksdale plans to file a motion to intervene in the USD Court within the next few days, and if approved, Barksdale will participate in the ongoing litigation and defend the USFS decision (representing the USFS). ) to work with the Department of Justice. to Sunnyside.
injunction
With all major permits in hand, Barksdale only needs an approved operating plan (“Poo“) To proceed with a planned drilling program at Sunnyside, which the USFS estimated would be completed in July. Plaintiffs threatened to file a temporary restraining order to prevent drilling at Barksdale (“)Toro“) negotiating with the USD Court. The TRO process is very quick (completed within a few days) and includes an oral argument with the presiding judge. Poor results based on limited information and short timelines have led both Barksdale and neighboring project managers to voluntarily suspend drilling activities pending a preliminary injunction. independently agreed to postpone (“PIs“) claims can be heard in a USD court. The PI process is effectively a “mini-trial” where all parties present evidence, giving judges the opportunity to understand the information before making a decision. given the opportunity.
The PI process includes the following steps: 1) Plaintiff has until July 14th to file a motion for preliminary injunction. (ii) Barksdale/USFS and other project managers plan to file responses opposing plaintiffs’ preliminary injunction by August 4; (iii) Plaintiff shall submit a response by August 18th. (iv) Oral arguments are scheduled for August 24th. (v) The USD Court hopes he will decide by September 15th. Note that these dates have been agreed upon by her USFS/Barksdale/Plaintiffs and have also been agreed upon by the USD Court. Plaintiffs must prove to the USD Court that the government failed to follow due process, implied that Barksdale drilling activities would cause irreparable harm, and that they were likely to win the entire case. There is This is a very high hurdle for projects that already have existing road networks, existing drilling pads and historic drilling.
Agreement to delay drilling
The Company has voluntarily agreed with the plaintiffs and the Department of Justice to postpone drilling at Sunnyside until September 15th. In the meantime, Barksdale will continue to work with the USFS to finalize and approve our PoO so that drilling can begin soon after the USD. court judgment. Barksdale has communicated the delay to his drilling contractors, who plan to make sure he has at least one rig and crew ready to go.
Full schedule of litigation
After the PI decision, the USD Court will proceed with scheduling the comprehensive lawsuit filed by the plaintiffs. Based on current estimates, this could take him 12 to 18 months. If a judge rules in favor of USFS/Barksdale on PI’s request, Barksdale will be able to continue its planned drilling program while the case unfolds.
Impact on Sunnyside option contracts
Barksdale currently owns a 51% interest in the Sunnyside Project, subject to completing the terms of an option agreement with Legal Resources within two years of all drilling permits being granted. Become. After completing his first term, Barksdale can increase his ownership up to 67.5% of his share for a further two-year term. Both of his two-year terms may be accelerated at Barksdale’s discretion. After obtaining all the major permits, the last remaining authorization is his PoO.
If the USFS completes the Sunnyside PoO before September 15, 2023, the first two-year option period will begin. Upon receipt of an approved PoO, the Company will promptly declare force majeure and stop the clock for the 2-year option period pending a USD Court decision in connection with the PI request.
Barksdale Resources CorporationA 2023 OTCQX BEST 50 Company, the company is a base metals exploration company headquartered 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 San Antonio Copper Projects in the Patagonia Mining District of southern Arizona and the San Javier Copper-Gold Project in central Sonora, Mexico.
On behalf of Barksdale Resources Corp.
Rick Trotman
Representative Director, President, CEO and Director
Rick@barksdaleresources.com
Terry Ann Weriki
Vice President of Communications
778-238-2333
TerriAnne@barksdaleresources.com
For more information, call 778-558-7145 or email us. info@barksdaleresources.com Or visit www.BarksdaleResources.com..
Cautionary Note Regarding Forward-Looking Information: This news release contains “forward-looking information” under applicable Canadian securities laws. This includes, but is not limited to, receipt and timing of formal approval of our Plan of Operations (“PoO”). Sunnyside Copper-Lead-Zinc-Silver Project. the nature, size, timing, objectives of the proposal and the impact of the Company’s planned drilling program on the Sunnyside Project after approval of the PoO, and the Company’s ability to obtain the necessary staffing, guarantees and financing; the potential impact of seasonal drilling restrictions on our ability to effectively execute such programs; Such forward-looking statements reflect management’s current beliefs and, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause them. Based on a number of estimates and assumptions made by the Company and information currently available to the Company, which are subject to the factors of Actual results and future events may differ materially from those expressed or implied by such forward-looking information. The reader understands that such forward-looking information is not a promise or guarantee, but includes general business, economic, competitive, political and social uncertainties, uncertain and unstable stocks and capital, etc. Please note that we are subject to known and unknown risks and uncertainties including, but not limited to: market, lack of available capital, actual results of exploration activities, environmental risks, future prices of base metals, operational risks, accidents, labor problems, delays in obtaining government approvals and permits, environmental problems and other issues in the mining industry. risk. Uncertainty as to the outcome of the USFS Environmental Assessment, the Determination Memorandum, and the aforementioned challenge to the validity of the full or partial validity of the results of the No Significant Impact of the Company’s proposed Sunnyside Copper-Lead-Zinc-Silver exploration have a nature. When the program and such problems will finally be resolved. If the USFS approval for the Sunnyside Project is successfully challenged, the Company will incur additional delays and costs (which can be significant) to remedy additional environmental issues and obtain new approval from the USFS. It will happen, but its approval is not guaranteed. . Further, there is no assurance that our PoO for Sunnyside Realty will be approved based on the criteria currently under review, or at all. Further, our proposed drilling program at Sunnyside is an exploratory search for commercial quantities of ore and is not guaranteed to be found. There are currently no NI 43-101 resources or spares on the Sunnyside site. In addition, the continued spread and severity of COVID-19, the ongoing war in Ukraine, high inflation and interest rates, may affect our business operations, supply chains, access to mining projects and our ability to procure equipment and materials. There are also uncertainties about the impact on , contractors and other personnel in a timely manner or across the economy. All forward-looking statements contained in this news release are qualified by these cautionary statements and the cautionary statements in our continuing disclosure documents available at SEDAR. www.sedar.com. Readers should therefore not place undue reliance on forward-looking information. We disclaim 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.
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