SEPTEMBER 26, 2014 – BHS2014-23
Bayhorse Silver Inc. (“Bayhorse” or the “Company”) BHS: TSX-V, reports that it has increased the previously announced loan for the sum of C$198,000 (the “Loan”) to C$210,000. The Loan is for a term of 12 months, is unsecured and bears interest at the rate of 12% per annum, compounded quarterly and payable quarterly in arrears. The Company has issued a promissory note for the Loan. Additionally, it has amended the consideration for the Loan, from 20% of the principal amount of the Loan issued at a deemed price of $0.12 per share (the “Bonus Shares”) to a deemed price of $0.10 .
The proceeds from the loan is to be used for the Bayhorse silver mine project in east-central Oregon, where the Company has contracted American Mining and Tunneling to conduct remedial work on the existing adit to provide safe access to the underground workings , and for general and corporate purposes.
The Loan is subject to TSX Venture Exchange (“TSX-V”) acceptance. Bonus Shares to be issued in conjunction with the Loan will be subject to a four month and one day hold period from the date of issue.
Mr. Graeme O’Neill, a director and officer of the Company is a lender and upon the issuance of the Bonus Shares will hold 3,443,000 common shares representing 16.23% of the Company’s issued and outstanding shares. The price of the Bonus shares was determined in accordance with the policies of the TSX Venture Exchange.
The Company announces the grant of 300,000 incentive stock options to officer, directors and consultants. The incentive stock options are exercisable for five years at a price of $0.10 cents per common share
The Company also announces that over the past several months it has effected a number of cost cutting measures, including relocation of its office and terminating certain consulting agreements that is projected to reduce G & A costs by approximately $150,000 per annum.