BayhorsePlans Bulk Sampling Program At Bayhorse Silver Mine, Announces Silver-Convertible Debenture Financing
JUNE 16, 2015 – BHS2015-21
Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) announces , subject to TSX-Venture Exchange (TSX-V) approval, a financing consisting of a two year Convertible Debenture (the “Debenture”) for gross proceeds of up to C$500,000.
Proceeds are for bulk sampling activity at the Bayhorse Silver Mine and for mine working capital.
The Company plans to complete adit rehabilitation and take a bulk sample of up to 15,000 tons from the historic Bayhorse silver mine workings, where high to bonanza grade silver has been identified (news release BHS2014-01). The adit safety work is estimated to take 17 days to access a mineralized zone reported to be up to 85 feet wide and 22 feet thick. The zone extends approximately 840 feet and is estimated to contain 160,000 tons with an estimated grade of 17-20 ounces of silver/ton at a 7.5 ounce per ton cut off (Herdrick 1981, see Company’s National Instrument 43-101 report dated February 2014 and news release BHS2015-10, February 2015).
The Company advises that a qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves.
Interest on the Debenture is payable at twelve (12%) percent per annum compounded monthly, and payable annually. The Debenture will be convertible into common shares of the Company at $0.10 cents per share in accordance with the policies of the TSX-V, or, conditional upon notification by the Corporation of the completion of the bulk sample, the Debenture holder may elect to convert the Debenture principal and accrued interest into ounces of silver at a conversion rate of US$16.50 an ounce.
In addition to any other exemption available to the Company, participation in the Debenture financing is also open to all existing shareholders, even if not accredited investors, under the “existing shareholder” exemption of National Instrument 45-106 as promulgated in Multilateral CSA notice 45-313 in participating jurisdictions. Finder fees may be payable on a portion of the financing according to the policies of the TSX-V.
The Company has cancelled its prior announced private placement of 2 million shares at ten cents per common share.