SKIPPACK, PA — North Bay Resources Inc. (OTC: NBRI) has announced a pivotal share purchase agreement to acquire a majority stake in the Bishop Gold Mill, located in the scenic but resource-rich environs of Inyo County, California. This strategic acquisition not only signals a new chapter for North Bay Resources but also highlights the growing interest in reviving and optimizing gold processing facilities amidst fluctuating global gold prices.
The Bishop Gold Mill, nestled six miles north of Bishop, California, boasts a flotation circuit capable of processing up to 96 tons of material per day. With the mill currently permitted for operation—pending the completion of minor infrastructure upgrades—North Bay Resources plans to commence operations in the near to medium term, heralding a potentially lucrative era for the company and its shareholders.
Under the terms of the agreement, North Bay Resources will assume a 55.5% ownership stake in 0877887 BC Ltd., the holding entity for the Bishop Gold Mill, through a series of cash and share payments to CMC Metals Ltd. (TSXV: CMC) and the current owner, 1436132 BC Ltd., a private Canadian company. The transaction includes an initial cash payment of US $12,500 upon signing, followed by subsequent payments through July 2024, totaling US $100,000. Additionally, North Bay will issue $400,000 CAD in common shares as part of the acquisition deal.
This acquisition is not just a financial transaction but a strategic maneuver designed to tap into the latent potential of the Bishop Gold Mill. By leveraging North Bay’s expertise and resources, the company aims to enhance the mill’s operational efficiency and output, thereby increasing its contribution to the gold production market.
To facilitate this ambitious project, North Bay Resources has announced an increase in its authorized share capital from 7.5 billion to 20 billion shares, signaling its readiness to support the acquisition and future expansion plans. This move, coupled with the decision to postpone a previously proposed reverse share split, reflects the company’s confidence in its growth trajectory and commitment to enhancing shareholder value.
Moreover, North Bay Resources is bolstering its financial arsenal through the modification and addition of convertible notes, aimed at providing the necessary capital for the Bishop Gold Mill acquisition and other operational needs. These financial instruments, bearing interest rates between 8% and 10%, offer the company flexible options to manage its liquidity while pursuing its strategic objectives.
The appointment of Aventure, LLC., as its new accountant, and the imminent hiring of an auditor underscore North Bay’s dedication to transparency and compliance, essential traits for companies navigating the complexities of the financial markets and the mining industry.
As North Bay Resources embarks on this exciting venture, the implications for the broader mining sector cannot be overstated. The revival and operation of the Bishop Gold Mill represent a beacon of innovation and resilience in an industry often challenged by volatile commodity prices and environmental concerns. Furthermore, this development promises to inject economic vitality into the local community of Bishop, providing jobs and supporting ancillary businesses.
In conclusion, North Bay Resources Inc.’s acquisition of the Bishop Gold Mill exemplifies the company’s strategic vision and its commitment to unlocking value in the gold mining sector. As the company moves forward with its plans, industry watchers and investors alike will be keenly observing how this venture impacts North Bay’s growth trajectory and the wider narrative of resource utilization and sustainability in mining.
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