North Bay Resources Acquires 70% Interest in Bishop Gold Mill
North Bay Resources Inc. (OTC-US: NBRI) has just made a significant move to strengthen its position in the mining sector. The company is thrilled to announce that it has officially entered into a share purchase agreement to acquire an additional 14.5% of the Bishop Gold Mill. This strategic acquisition brings NBRI's total ownership stake in the mill to an impressive 70%, with the remaining 30% still held by 1436132 B.C. Ltd, a privately owned corporation.
Details of the Acquisition
The Bishop Gold Mill, with a processing capacity of 96 tons per day, is poised at a critical point in its journey. Recently, NBRI has made enhancements to improve gold extraction capabilities at the mill. They have added new gold extraction equipment, including a state-of-the-art centrifuge to the gravity circuit. This upgrade follows a promising metallurgical study that estimates a gold recovery rate of 97% from ore sourced from NBRI's Fran Gold Project. The quality of the material being processed shows a head grade of 0.9 ounces of gold per ton, a very encouraging sign for future operations, as NBRI has begun transporting material from the Fran project to the Bishop mill for test processing.
Financial Aspects of the Deal
To facilitate this acquisition, NBRI is set to follow through with a series of cash and share payments. The cash commitments are detailed below:
- $12,500 payable upon signing the agreement.
- $12,500 due on February 15.
- $12,500 due on April 1.
- $50,000 due on July 7.
- $25,000 due on August 15.
- $50,000 due on September 25.
All cash payments will be settled in USD, demonstrating the company's commitment to this venture.
Share Payments
In addition to cash payments, NBRI is also scheduled to deliver a significant share payment. This entails providing $200,000 CAD in common shares, which will be issued upon signing. With the current exchange rate considered, this translates to approximately 155,555,556 restricted common shares of NBRI, subject to a mandatory minimum holding period of one year. This share parcel represents about 2% of NBRI's total common shares currently in circulation.
Company Leadership Comments on the Acquisition
Kevin Brewer, the President and CEO of CMC Metals Ltd., expressed enthusiasm regarding this newfound partnership. He stated that this transaction is not only advantageous but also essential for driving future value from the Bishop Mill. The anticipated return on this investment looks strong as NBRI continues to advance its operations at the mill.
Future Outlook Following the Acquisition
With this new ownership structure, CMC will no longer retain a security interest in the mill after the completion of all cash and share payments. Upon finalizing this acquisition, CMC will hold a total of 1,275,555,556 common shares of NBRI, positioning itself favorably for the future. As the operator of the mill, NBRI is well-prepared to harness the full potential of its substantial gold resources.
About North Bay Resources Inc.
North Bay Resources Inc. is committed to enhancing its footprint in the gold mining sector. With focused expertise, the company is positioning itself for sustainable growth as it integrates environmental stewardship with innovative extraction technologies. The leadership team is dedicated to maximizing operational efficiency at the Bishop Gold Mill.
Frequently Asked Questions
What size of ownership does North Bay Resources hold in the Bishop Gold Mill?
North Bay Resources now holds a 70% ownership interest in the Bishop Gold Mill.
What improvements have been made at the Bishop Gold Mill?
Recent upgrades include the installation of additional gold extraction equipment, such as a centrifuge to enhance the gravity circuit.
Who are the current stakeholders of the Bishop Gold Mill?
The mill is primarily owned by North Bay Resources (70%) and 1436132 B.C. Ltd (30%).
What is the expected recovery rate from the Fran Gold Project?
The metallurgical study indicates an estimated recovery rate of 97% gold from material processed at the Bishop mill.
Who can I contact for more information about North Bay Resources?
For inquiries, you can reach out to Kevin Brewer, the President and CEO of NBRI, for further information and details.
