Company to make first draw under agreement reached in October 2009
By Angela McDaniels
Tacoma, Wash., Jan. 10 - North Bay Resources Inc. will sell up to 19,726,822 shares of common stock under the first tranche of its $5 million equity credit line with Tangiers Investors, LP, according to an S-1 filing with the Securities and Exchange Commission.
The shares will be sold at 90% of the lowest volume-weighted average price of the company's common stock during the five days immediately following the notice date.
After the S-1 registration becomes effective, the shares from the first tranche may be sold to Tangiers from time to time over 24 months. Draws are limited to $100,000 per 10 consecutive trading days.
The company said that at its Jan. 6 share price of $0.035, the 10% discount would result in a sale price of $0.0315 per share, or $611,395 of net proceeds. At that price, the company would need to sell 158,730,159 shares to Tangiers to raise the full $5 million.
The company arranged the equity line in October 2009 and expected to register the line in February 2010.
"In March 2010, we learned that we could not register the equity line until we were first a fully reporting company and our shares were no longer quoted solely on the Pink Sheets. The registration statement that was recently made effective has accomplished that, as we are now a fully reporting company and our shares are now dually quoted on both the OTCBB and OTCQB," North Bay chief executive officer Perry Leopold said in a company news release.
Proceeds will be used for general working capital purposes.
North Bay Resources is a junior mining company based in Skippack, Pa.
| Issuer: | North Bay Resources Inc.
|
| Issue: | Equity line of credit
|
| Amount: | $5 million
|
| Shares: | Up to 19,762,822 (first tranche)
|
| Price: | 90% of lowest VWAP of common stock for five days following drawdown notice
|
| Warrants: | No
|
| Investor: | Tangiers Investors, LP
|
| Agreement date: | Oct. 21, 2009
|
| Stock symbol: | OTCBB: NBRI
|
| Stock price: | $0.036 at close Jan. 7
|
| Market capitalization: | $2.33 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
