Bayhorse Silver Inc. (the "Company" or "Bayhorse") announces that, subject to TSX-V approval, it has closed its previously announced non-brokered private placement of 3,000,000 Units at $0.10 per Unit for gross proceeds of $300,000.
Each Unit consists of one (1) common share and one (1) transferable common share purchase warrant, with each warrant exercisable into one (1) common share of the Company at an exercise price of $0.20, exercisable for a period of 30 months from the date of issuance, being January 23, 2014.
The funds raised will be used for the Bayhorse silver project, New Zealand Gold Projects, costs associated with the Spinco by way of plan of arrangement, that was approved by shareholders at the Company's recent Annual and Special General Meeting, as well as general and administrative costs.
A finder's fee was paid on a portion of the private placement, being $10,500 cash and 105,000 agent's warrants, with each warrant being exercisable into one common share at an exercise price of $0.20 per share, exercisable for a period of 30 months from the date of issuance, being January 23, 2014.
Mr. Graeme O'Neill, a director and officer of the Company subscribed for 1,000,000 Units of the placement and upon completion of the placement holds 2,607,212 common shares, representing 13.6% of the Company's issued and outstanding shares. The price of the units was determined in accordance with the policies of the TSX Venture Exchange. The acquisition of units by insiders under the private placement was exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 pursuant to sections 5.5(a) and 5.7(a) of that instrument.
All securities issued under the private placement are subject to a four-month hold period which expires May 24, 2014.
