02:41:01 EDT Fri 29 Mar 2024
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Bayhorse closes $616,000 final tranche of financing

2020-04-16 15:59 ET - News Release

Mr. Graeme O'Neill reports

BAYHORSE CLOSES FINAL TRANCHE OF 18 MILLION UNIT NON-BROKERED PRIVATE PLACEMENT

Bayhorse Silver Inc. has closed the final tranche of 12.32 million units of its previously announced non-brokered private placement of 18 million units at five cents per unit for gross proceeds of $616,000.

Each five-cent unit consists of one common share and one transferable common share purchase warrant. Each warrant is exercisable into one common share of the company at an exercise price of 10 cents, or, at the warrantholder's option, 200 warrants are exercisable into one ounce of silver at an exercise price of $20 per ounce. The warrants are exercisable for a period of 24 months from the date of issuance. The exercise of the silver option into silver is subject to the following conditions:

  • The silver option may only be exercised after the company successfully mines and processes silver from the Bayhorse property prior to the maturity date of the warrants, provided that the company, at its sole discretion, delivers written notice to each warrantholder that they shall have the right to receive payment in kind by delivery of physical ounces of silver.
  • The exercise of the silver option is subject to a minimum of 5,000 warrants (25 ounces of silver).

The funds raised are for optimizing the metallurgical work on the silver recovery from the upgrading, processing and refining of silver mineralization from the Bayhorse silver mine, Oregon, United States, as well as for general and administrative purposes.

Bayhorse's chief executive officer, Graeme O'Neill, commented, "The company thanks all our private placement subscribers for their support during these trying times."

The company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and advises there is an increased uncertainty and specific economic and technical risk of failure with any production decision. These risks include, but are not limited to: (i) a drop in price of commodities produced, namely silver, copper, lead and zinc, from the pricing used to make a production decision; (ii) failure of grades of the produced material to fall within the parameters used to make the production decision; (iii) an increase in mining costs due to changes within the mine during development and mining procedures; and (iv) metallurgical recovery changes that cannot be anticipated at the time of production.

Finders' fees are payable to Leede Jones Gable Inc. (cash of $301 and 6,020 warrants), P.I. Financial Corp. (cash of $17,500 and 350,000 warrants) and Canaccord Genuity Corp. (cash of $1,750 and 35,000 warrants) on a portion of the financing not taken down by insiders, according to the policies of the TSX Venture Exchange.

Mr. O'Neill has subscribed in total for 3.3 million units ($165,000), and Bayhorse's chief financial officer, Rick Low, has subscribed for 400,000 units ($20,000) of the private placement. Mr. O'Neill has sold, both through the facilities of the exchange and privately, 3.3 million shares of the company to facilitate his subscription.

Securities issued under this placement will be subject to a four-month-and-one-day hold period from the date of issuance.

About Bayhorse Silver Inc.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine, located in Oregon, United States, and an option on the precious-metal-rich Brandywine volcanogenic massive sulphide property, located in British Columbia, Canada.

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