Company increases commitment to $10 million, term to five years
By Toni Weeks
San Luis Obispo, Calif., Feb. 5 - North Bay Resources Inc. amended its securities purchase agreement with Tangiers Investors, LP on Jan. 28, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The original agreement was dated Oct. 7, 2009 and deemed effective on Jan. 24, 2011.
Under the agreement, the company may sell shares to Tangiers from time to time. The amendment increases the commitment amount to $10 million from $5 million and extends the term of the agreement to 60 months from 36 months. It now expires five years from the Jan. 24, 2011 effective date.
The agreement also raises both the minimum and maximum amounts that can be received from each advance notice to a minimum of $10,000 and a maximum of $250,000. Previously, draws were to be limited to $100,000 per 10 consecutive trading days.
The dollar amount of each advance will be based on the average daily trading volume in dollar amount during the 10 trading days preceding the advance notice. Tangiers will have the option to decline any advance notice that exceeds 300% of the base amount.
As before, 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. In addition, any advance notice that exceeds the base amount by up to 200% will be further discounted by 7.5% to 82.5% of the market price, and any notice in excess of 200% of the base amount will be discounted by an additional 7.5% (from 82.5%) to 75% of the market price.
Background
The company arranged the equity line with Tangiers 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," North Bay chief executive officer Perry Leopold said in a previous company news release.
"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."
Proceeds will be used for general working capital purposes.
North Bay Resources is a junior mining company based in Lansdale, Pa.
| Issuer: | North Bay Resources Inc.
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| Issue: | Equity line of credit
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| Amount: | $10 million
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| Price: | 90% of lowest VWAP of common stock for five days following drawdown notice
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| Warrants: | No
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| Investor: | Tangiers Investors, LP
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| Agreement date: | Oct. 21, 2009
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| Amended: | Jan. 28, 2013
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| Stock symbol: | OTCBB: NBRI
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| Stock price: | $0.036 at close Jan. 7, 2011
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| Market capitalization: | $3.22 million
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