SOURCE: North Bay Resources Inc.
SKIPPACK, PA--(Marketwire - Oct 4, 2012) - North Bay Resources Inc. (OTCBB: NBRI) (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to announce that it has agreed to a $750,000 bridge loan (the "Note") with Tangiers Investors, LP ("Tangiers").
As set forth in the Company's Current Report on Form 8-K filed with the United States Securities and Exchange Commission ("SEC") on October 3, 2012, the funds will be drawn in tranches of $50,000 no less than every two weeks, by mutual consent. The Principal Sum due to Tangiers shall be prorated based on the consideration actually paid plus any accrued interest, such that the Company is only required to repay the amount funded, and the Company is not required to repay any unfunded portion of the Note. Complete details on the terms of the Note can be found in the aforementioned 8-K at http://www.sec.gov/edgar.shtml.
The proceeds from this Note will be used for the Company's mining projects and general working capital, and is intended as a bridge loan to insure that the Ruby Tunnel rehab work continues while the Company waits for the eventual receipt of $7.5M in funding for the Ruby Project through the federal EB-5 Program. Upon receipt of the EB-5 funds, the company expects to extinguish all debts incurred related to the Ruby Project over the past year, including the outstanding mortgage on the Ruby itself.
Tangiers Managing Director Michael Sobeck commented, "We continue to be impressed with the team North Bay has assembled at the Ruby Project, and the way in which the Company has steadily moved the Ruby Project forward towards the start of production has exceeded our expectations. We remain long term supporters of their efforts, and expect that this bridge loan will provide the Company with a suitable backstop going forward until their EB-5 funds are received."
About Tangiers Investors, LP
Founded in 2007, Tangiers Investors, LP is a Southern California based fund that makes direct investments into domestic private and public small and micro-cap companies.
About North Bay Resources Inc.
North Bay Resources Inc. (OTCBB: NBRI) is a fully-reporting junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.
In the U.S., the Company owns the Ruby Gold Mine in Sierra County, California, and is presently planning to acquire additional operating mines in the western U.S.
The Company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay's business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website (or press releases), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml