|By Marketwired .||
|April 8, 2014 01:49 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/08/14 -- Bayhorse Silver Inc. ("Bayhorse" or the "Company") (TSX VENTURE:BHS) reports that it has received a loan for the sum of C$198,000 (the "Loan"). 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. As additional consideration for the Loan, the Company has agreed to issue 330,000 bonus shares, that are equal to 20% of the principal amount of the Loan issued at a deemed price of $0.12 per share (the "Bonus Shares").
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 in preparation for a substantive sampling program. This work is projected to be completed by the end of April, 2014. Underground workings schematics are available on our website, details of which can be seen at http://www.bayhorsesilver.com/properties/technical-images/
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 2,912,310 common shares representing 15.1% 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.
Bayhorse Silver Inc is a tier 2 mining company listed on TSX Venture Exchange, with its principal business being mineral exploration and development through its principal properties, being the Alexander River gold project in New Zealand and its recently acquired Bayhorse Silver Mine project in east-central Oregon. The Company also has a 100% interest in two other New Zealand gold projects, Red Queen and Paparoa, where it is actively pursuing exploration. The Company also holds a 30% net profit interest ("NPI") in the Flagstaff Barite Mine, which it recently sold to SBS Mining of London, England, and anticipates this NPI will produce revenue as early as late 2014.
The Company has also announced an initiative in the newly legalized medical marijuana field.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Bayhorse Silver Inc.