Mr. Graeme O'Neill reports
BAYHORSE SILVER EXECUTES FORMAL OFFTAKE AGREEMENT WITH OCEAN PARTNERS LTD. FOR BAYHORSE SILVER CONCENTRATE
Bayhorse Silver Inc. has executed a definitive offtake agreement with Ocean Partners U.K. Ltd. for the sale of silver/copper concentrate from its Bayhorse silver mine in Oregon.
The initial offtake agreement is for the delivery and sale of 300 metric tons or 15 full container loads of silver/copper concentrate that is being produced from the company's Bayhorse silver mine. Among other conditions, Ocean has the right of first refusal to a 12-month contract extension after completion of the delivery of the first 300 metric tons of silver/copper concentrate.
The terms and conditions of the agreement are confidential between the parties.
"This offtake agreement for silver/copper concentrate from the Bayhorse silver mine is a milestone achievement for the company and demonstrates confidence in the company's ability to transition from development to commercial operations," states Graeme O'Neill, chief executive officer of Bayhorse. "I congratulate our team for this achievement and look forward to achieving our concentrate production targets utilizing our newly acquired operations site in Payette, Idaho, USA, where we plan to relocate our concentrate processing facilities."
Jay Hemenway, senior trader in charge of byproducts, precious and minor metals (United States) for Ocean, states, "We are pleased to partner with Bayhorse and look forward to a long-term relationship as Bayhorse further develops its silver mining operations."
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.
This news release has been prepared on behalf of the Bayhorse board of directors, which accepts full responsibility for its content. Dr. Stewart Jackson, PGeo, a qualified person and consultant to the company has prepared, supervised the preparation of, and approved the technical content of this press release.
About Bayhorse Silver Inc.
Bayhorse is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine located in Oregon and an option to acquire an 80-per-cent interest on the Brandywine precious metals rich, volcanogenic massive sulphide property located in British Columbia. The company has an experienced management and technical team with extensive mining expertise surrounding exploration and building mines.
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