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BHS.V ·

Bayhorse Closes First Tranche of Private Placement

Financings

December 20, 2023 BHS2023-17

BAYHORSE CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Bayhorse Silver Inc, (BHS: TSX-V , BHSIF: OTCQB, 7KXN: FRANKFURT ) (the “Company”

or “Bayhorse”) announces that, subject to the approval of the TSX Venture Exchange, it has closed a

first tranche of 13,167,500 units of its non-brokered private p lacement dated December 20, 2023, for

gross proceeds of $658,375.

Each unit will consist of one common share, and one transferrab le common share purchase warrant.

Each warrant will be exercisable into one common share of the Company at a price of $0.10 cents per

common share for a period of 24 months from the date of issuance.

The funds received are to conduct the planned initial undergrou nd drilling program at the Bayhorse

Mine, to conduct a deep penetrating VTEM survey over the entire Bayhorse Property to determine

whether a deep seated anomaly is present, to complete the Company’s full operating permit application

for the Bayhorse Silver Mine, and for general and administrative expenses.

In addition to any other exemption available to the Company, pa rticipation 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.

Finder fees may be payable on a portion of the financing not ta ken down by insiders according to the

policies of the TSX Venture Excha nge. Subject to the approval o f the TSX Venture Exchange, the

Company will pay cash finder fees of $24,430 and issue 488,600 finder warrants, which are exercisable

into one common share of the Company at a price of $0.10 cents per common share for a period of 24

months from the date of issuance. Any shares issued pursuant to the finder warrants are subject to a

hold period expiring on April 21, 2024.

Securities issued under this first tranche are subject to a hold period expiring on April 21, 2024.

Bayhorse Silver CEO, Graeme O’Neill, has subscribed for 2,600,0 00 units ($130,000) of the private

placement. He has funded his subscription partly through arranged sales and through the facility of the

TSX Venture Exchange. Bayhorse Silver CFO, Rick Low, has subscribed for 600,000 units ($30,000)

of the private placement. This participation by Bayhorse’s CEO and CFO constitutes a “related party

transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders

in Special Transactions (“MI 61-101”). Such participation is ex empt from the formal valuation and

minority shareholder approval requirements of MI 61-101 as neither the fair market value of the units

acquired by the insider, nor the consideration for the units pa id by such insider, exceed 25% of the

Company’s market capitalization.

Bayhorse Silver Inc CEO, Graeme O’Neill, will be attending three Vancouver Conferences in January.

The Resource Investment Conference, January 21/22, the Metals I nvestor Forum, January 19/20, and

the Cordilleran Roundup, January 22-25.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which

accepts full responsibility for its content.

On Behalf of the Board.

Graeme O'Neill, CEO

866-399-6539, 604-684-3394

About Bayhorse Silver Inc.

Bayhorse Silver Inc. is an exploration and production company w ith a 100% interest in the historic

Bayhorse Silver Mine located in Oregon, USA. With state of the art Steinert Ore-Sorting technology

reducing waste rock entering the processing stream by up to 85% , we have created a minimum

environmental impact facility capable of mining 200 tons of min eralization per day and the ability to

process and supply 3,600 tons per year of silver/copper/antimon y concentrate ranging between 7,500

to 15,000 g/t silver and 10-12% c opper, 10-12% antimony, and 15 -18% zinc using standard flotation

processing at its milling facility in nearby Payette County, Id aho, USA, with an offtake agreement in

place with Ocean Partners UK Limited.. The Company also has an option to acquire an 80% interest

in the Brandywine high grade sil ver/gold property located in B. C. Canada. The Company has an

experienced management and technical team with extensive mining expertise in both exploration and

building mines.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts res ponsibility for the adequacy or accuracy of this

release.