Bayhorse Increases Financing to 16 Million Units

Posted on Apr 15, 2020 in News Release

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) has, subject to TSX Venture Exchange approval, increased its previously announced non-brokered private placement for up to 10,000,000 Units at C$0.05 per Unit for gross proceeds of C$500,000 to up to 16,000,000 Units at C$0.05 cents per Unit for gross proceeds of C$800,000.

Each C$0.05 Unit consists of one (1) common share, and one (1) transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable into one (1) common share of the Company at an exercise price of $0.10 cents, or, at the Warrant Holder’s option, each 200 Warrants is exercisable into one (1) ounce of silver at an exercise price of C$20.00 per ounce (the “Silver Option”). The Warrants are exercisable for a period of 24 months from the date of issuance. The exercise of the Silver Option into silver is subject to the following conditions:

  1. The Silver Option may only be exercised after the Company successfully mines and processes silver from the Bayhorse property prior to the maturity date of the Warrants, provided that the Company, at its sole discretion, delivers written notice to each Warrant holder that they shall have the right to receive payment in kind by delivery of physical ounces of silver; and
  2. The exercise of the Silver Option is subject to a minimum of five thousand (5,000) Warrants (25 ounces of silver).

addition to any other exemption available to the Company, participation in the
non-brokered financing is also open to all existing shareholders, even if not
accredited investors, under the “existing shareholder” exemption of
National Instrument 45-106 as promulgated in Multilateral CSA notice 45-313 in
participating jurisdictions.

The funds
raised are for the purpose of optimizing the metallurgical work on the silver
recovery from the upgrading, processing and refining of silver mineralization
from the Bayhorse Silver Mine, Oregon, USA., as well as general and
administrative purposes.

Bayhorse CEO, Graeme O’Neill, comments, “With the recent resurgence in
precious metals, we have seen increased interest in our current financing, so
have increased it to meet the subscriptions received. Precious Metal markets appear
to be reacting to a significant disconnect between the spot and the futures
price of both gold and silver. Spot gold traded today at US$1,742 vs the nearby
future price at US$1,785, and spot silver spot traded at US$15.74 with the
nearby future trading at US$16.45. Many analysts have been commenting on this disconnect
as a potential inability of future physical gold and silver to be delivered.”

The Company is not basing any decision to produce on a feasibility study
of mineral reserves demonstrating economic and technical viability and advises
there is an increased uncertainty and specific economic and technical risk of
failure with any production decision. These risks include, but are not limited
to, (i) a drop in price of commodities produced, namely silver, copper, lead
and zinc, from the pricing used to make a production decision; (ii) failure of
grades of the produced material to fall within the parameters used to make the
production decision; (iii) an increase in mining costs due to changes within
the mine during development and mining procedures; and (iv) metallurgical
recovery changes that cannot be anticipated at the time of production.

fees may be payable on a portion of the financing not taken down by insiders
according to the policies of the TSX-V.

issued under this placement will be subject to a four month and one day hold
period from the date of issuance.

This News Release has been prepared on behalf
of the Bayhorse Silver Inc. Board of Directors, which accepts full
responsibility for its contents.

On Behalf of the Board.

Graeme O’Neill, CEO