BAYHORSE INCREASES AND CLOSES RECENT PRIVATE PLACEMENT
March 28, 2022. BHS2022-06
Bayhorse Silver Inc, (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the “Company” or “Bayhorse”)
The Company announces that, subject to TSX-V Exchange approval, it has increased and closed its non-brokered private placement from up to 10,000,000 Units at $0.08 cents per Unit, to 11,497,000 units for gross proceeds of $919,760 .
Each C$0.08 cent Unit will consist of one (1) common share and one (1) transferable common share purchase warrant, with each warrant exercisable into one (1) common share of the Company at an exercise price of $0.15 cents, exercisable for a period of 24 months from the date of issuance.
The proceeds of the financing is for the Bayhorse Silver Mine, for Mill operations working capital, for full operating permit approval, that allows unlimited mining operations, and general and administrative expenses.
The Company paid finder’s fee of $952.00 in cash for the Placement and issued 11,900 finder’s warrants. Each finder’s warrant is exercisable into one (1) common share of the Company at an exercise price of $0.15 cents, exercisable for a period of 24 months from the date of issuance.
Bayhorse Silver CEO, Graeme O’Neill has subscribed for 5 million Units in the Private Placement. He has funded his subscription through arranged sales through the facility of the TSX Venture Exchange. This participation by Bayhorse’s CEO constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units acquired by the insider, nor the consideration for the Units paid by such insider, exceed 25% of the Company’s market capitalization.
Securities issued under this placement will be subject to a four month plus a day hold period from the date of issuance.
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.
The Company also announces that, subject to the approval of the TSX-V Exchange, the Company has extended the expiry date of the following warrants (all other terms remain unchanged):
- Original expiry date of 4,530,000 warrants: April 2, 2022.
New expiry date of 4,530,000 warrants: October 2, 2022.
Exercise price of warrants: 10 cents.
- Original expiry date of 7,420,000 warrants: April 17, 2022.
New expiry date of 7,420,000 warrants: October 17, 2022.
Exercise price of warrants: 10 cents.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content.
