Bayhorse Completes 100% Ownership In Bayhorse Mine Lease
January 11, 2018 BHS2018-01
Bayhorse Silver Inc Increases Interest In The Bayhorse Silver Mines Mining Lease To 100%, Increases Previously Announced Financing To $1,500,000, And Closes 2,231,500 Unit Second Tranche Of The Financing.
Bayhorse Silver Inc., TSX-V: BHS (“Bayhorse” or the “Company”) has increased its interest in the Mining Lease on the Bayhorse Silver Mine from 80% to 100%.
During the period from May, 2017, when it exercised its Option to earn an 80% interest in the Mining Lease, and December 31, 2017, the Company has expended a further US$2,175,000 for a total deemed expenditure of $3,775,000 on the Bayhorse Silver Mine.
American Cordilleran Mining Corp, and AMCOR Exploration, (together AMCOR) the 20% minority holder, has advised Bayhorse that it is not contributing its proportionate share of the Joint Venture expenditures, and has accepted dilution of its interest below 10%. According to the terms of the Joint Venture formed between Bayhorse and AMCOR, Bayhorse now has acquired a 100% interest in and to the Mining Lease.
Subject to the approval of the TSX Venture Exchange, it is increasing the previously announced financing of $1,250,000 to $1,500,000, and has closed a second tranche of the financing for gross proceeds of $446,300. Each Unit consists of one (1) common share and one (1) transferable common share purchase warrant at an exercise price of $0.30 cents, exercisable for a period of 24 months from issuance.
The funds raised will be for working capital for the Bayhorse Silver Mine, and for general and corporate purposes.
Finder fees may be payable on a portion of the financing according to the policies of the TSX-V. Graeme O’Neill, an Officer and Director of the Company has sold 960,000 common shares of the Company through the facilities of the Exchange in an arranged sale (gypsy swap) and has now subscribed for a total of 3,000,000 Units of the financing.
The Company advises it is not basing its 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 its production decision.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.
On Behalf of the Board.
Graeme O’Neill, CEO