VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 16, 2015) - Bayhorse Silver Inc. (TSX VENTURE:BHS) (the "Company" or "Bayhorse") announces, subject to TSX-Venture Exchange (TSX-V) approval, a financing consisting of a two year Convertible Debenture (the "Debenture") for gross proceeds of up to C$500,000.
Proceeds are for bulk sampling activity at the Bayhorse Silver Mine and for mine working capital.
The Company plans to complete adit rehabilitation and take a bulk sample of up to 15,000 tons from the historic Bayhorse silver mine workings, where high to bonanza grade silver has been identified (news release BHS2014-01). The adit safety work is estimated to take 17 days to access a mineralized zone reported to be up to 85 feet wide and 22 feet thick. The zone extends approximately 840 feet and is estimated to contain 160,000 tons with an estimated grade of 17-20 ounces of silver/ton at a 7.5 ounce per ton cut off (Herdrick 1981, see Company's National Instrument 43-101 report dated February 2014 and news release BHS2015-10, February 2015).
The Company advises that a qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves.
Interest on the Debenture is payable at twelve (12%) percent per annum compounded monthly, and payable annually. The Debenture will be convertible into common shares of the Company at $0.10 cents per share in accordance with the policies of the TSX-V, or, conditional upon notification by the Corporation of the completion of the bulk sample, the Debenture holder may elect to convert the Debenture principal and accrued interest into ounces of silver at a conversion rate of US$16.50 an ounce.
In addition to any other exemption available to the Company, participation in the Debenture financing is also open to all existing shareholders, even if not accredited investors, under the "existing shareholder" exemption of National Instrument 45-106 as promulgated in Multilateral CSA notice 45-313 in participating jurisdictions. Finder fees may be payable on a portion of the financing according to the policies of the TSX-V.
The Company has cancelled its prior announced private placement of 2 million shares at ten cents per common share.
Bayhorse Silver Inc. is a junior exploration company holding a Farm-In Agreement with Saturn Minerals to acquire a 25% interest in the Little Swan oil project in Saskatchewan, Canada. It is earning an 80% interest in the historic Bayhorse Silver Mine in Oregon, USA that has the potential for a substantial silver discovery. It also has a 100% interest in its three major high grade New Zealand gold prospects (Alexander River, Paparoa and Red Queen), in the highly prolific West Coast South Island gold fields of New Zealand, which offers investors the potential for a major gold discovery. The Company continues to retain a 30% Net Profit Interest in the Flagstaff barite mine in Washington State, USA.
The Company has an experienced management and technical team with extensive exploration expertise. This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.
The technical content of this press release has been reviewed by Dr. S. A. Jackson, PGeo., a Qualified Person and Technical Advisor to the Company.
On Behalf of the Board
Graeme O'Neill, President
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.
This News Release Contains Forward-Looking Statements - All statements herein, other than statements of historical fact, including, without limitation, plans for and intentions with respect to the Company's capitalization, preparation of technical reports, proposed work programs, budgets and proposed expenditures, permitting, construction and production timing are forward looking statements. While the Company believes such statements are reasonable, no assurance can be given that any expectations will prove to be correct and the forward-looking statements are not guarantees of future results or performance and that actual results may differ materially from those in the forward-looking statements. Readers should not place undue reliance upon forward-looking statements and the Company undertakes no obligation to re-issue or update any forward-looking statements as a result of new information or events after the date hereof or as may be required by law. All forward-looking statements and information herein are qualified by this cautionary statement.
Contact Information:
604.684.3394
www.bayhorsesilver.com