Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) announces, subject to TSX-Venture Exchange (TSX-V) approval, a financing consisting of a Two Hundred (200) three year, Convertible, Silver-Convertible, Debentures (the “Debentures”) for gross proceeds of up to US$1,000,000.
The Debentures shall bear interest at a rate of twelve (12%) percent per annum, payable annually in arrears. Additionally, at the election of the Holders, the Debentures will be convertible into common shares of the Company at C$0.125 cents per share in accordance with the policies of the TSX-V, or, conditional upon notification by the Corporation of silver production, the Debenture holder may elect to convert the Debenture principal and accrued interest into ounces of silver at a conversion rate of US$15.50 an ounce.
The Company may, twelve months after the date of issue, elect to redeem the US$5,000 Debentures, in part or in full, at a price of US$5,600 per each redeemed Debenture, plus payment of all accrued amounts due in respect of the redeemed Debentures. Each Debenture shall entitle the Holder to twenty thousand Warrants the “Debenture Warrants”) exercisable into common shares of the Company at Canadian $0.25 per Debenture Warrant Share until three years from the date of issue.
The funds raised are for operating capital for the Bayhorse Silver Mine, for extraction and processing of a block of mineralization that has been identified from Silver King’s historic 1984 resource plan, and for general and corporate purposes. The mineralized rhyolite block, that dips to the south, is fully accessible by the Company’s mechanized mining equipment.
Long hole drilling into the block to confirm the exact north/south margins of the andesite hanging wall and footwall, is being conducted, and samples, together with other sampling around the block are being submitted for assay as completed. Extraction and processing of the block is planned to commence the first week of September.
Purchasers of the Debentures shall be granted pre-emptive rights during the time they hold the Debentures to participate in any future issuance of debt securities of the Company.
The Company advises that historic mineral resources referred to above are not mineral reserves. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future. The Company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and also advises there is increased uncertainty and specific economic and technical risks of failure associated with any production decision
Subject to approval of the TSX Venture Exchange, the Company is closing 40 Debenture Units for gross proceeds of US$200,000. Graeme O’Neill, a Director and Officer of the Company is subscribing for 30 Debenture Units.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr. Stewart Jackson, P.Geol., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of, or approved the technical content of this press release.
On Behalf of the Board.
Graeme O’Neill, President
604-684-3394
Bayhorse Silver Inc., a junior exploration company, has earned 100% interest in the historic Bayhorse Silver Mine, Oregon, USA. The Company has an experienced management and technical team with extensive exploration and mining expertise.
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.