Bayhorse Silver Corporate Update
April 15, 2016 BHS2016-02
THE BAYHORSE SILVER MINE, OREGON, & CORPORATE UPDATE.
Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) reports on the status of the Bayhorse Silver Mine, Oregon, and the first three months of 2016 as well as Silver prices.
Our focus is to marry the latest, proven, technology with mining to reduce the environmental footprint of our planned mines and go to greener, more environmentally friendly, mining methods. We are reviewing the addition of new, proven, mining and processing technology to complement the tested Ore-Sorting and Dense Media mineral upgrading technology to be used at both the Bayhorse Silver Mine and the Bridging the Gap Project.
Currently, mucking out and timbering operations inside the Bayhorse Mine are being conducted by HRB Mining Services of Silver Valley. The Company has purchased an EIMCO 911 LHD underground mucker, and shipped it to the Bayhorse Silver Mine. This machine is very suitable for use in the narrower drifts and adits of the existing underground workings. The current work has been funded by the proceeds of the US$ Debenture, of which US$450,000 has been subscribed for in three tranches by existing shareholders of the Company. With the recent price increase of silver to US$16 per ounce, the Company anticipates early completion of the remaining Debenture balance of US$300,000.
In letter dated April 13, 2016, Deutsche Bank has reached a settlement in the U.S. District Court in New York, where it has confirmed silver market manipulation. This may have an effect on future Silver prices.
In the Silver Valley, Idaho, planning continues on the Bridging the Gap Project. Subject to adequate funding from either proceeds from any silver sales generated from operations at the Bayhorse Silver Mine, or from a non-dilutional financing, preliminary work will commence late in the second quarter. Initial work will open the Ranger Adit to access the historic Crown Point workings formerly mined at a grade of 10 oz/t silver and 10% lead (U.S. Bureau of Mines and U.S Mineral Defense Department records).
As the Resource Sector continually deteriorated during the past three years, Company directors have steadfastly avoided diluting the Company’s shares through low priced financings, and instead, have extended two loans to the Company totaling $240,000, including interest. Of this, including accrued interest, $190,000 is owed to director Graeme O’Neill. An additional loan has been made to the Company in the amount of $56,000 with interest payable at 12% per year. Consideration for the loan, subject to approval from the TSX Venture Exchange, is 20% of the value of the loan in common shares (112,000 common shares) to be issued to the lender in accordance with the policies of the Exchange.
Director Graeme O’Neill has sold 624,026 shares of the Company through the facilities of the Exchange, and has exercised 650,000 common share purchase warrants for gross proceeds to the Company of $65,000. Graeme O’Neill has also subscribed for US$20,000 of the Debenture.