Our most recent news release was BHS2020-05, linked here,
increasing the $0.05 cent Private Placement from 7.5 Million Units, BHS2020-04 linked here, to 10 Million Units, and closing a first tranche of 5 million Units.
With Covid-19 still ravaging countries around the world, and lockdowns in place everywhere, along with the uncertainty about the future, we believed it prudent in raising the additional $125,000 dollars. This is for 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.
Although we have advanced the Bayhorse to production status by spending, in mining terms, a minor US$7 million, since the precious metals crash in May of 2018, working capital has been extremely difficult to find. We have presented to numerous funding sources, who saw Bayhorse as too small in terms of their financing needs, and their desire to do large financings of $40-$50 million or more
Clearly these last four months, with trillions lost in the general market crash, perceptions have changed. Gold and Silver, ETF's, Mining shares, were sold with abandon so margin calls could be met, and now, going forward, cash flow, or quick to achieve cash flow, will be king. Astute investors follow the simple precept "Buy when there is blood in the streets".
Well the blood has been flowing, and they have been buying in a way that they have a cheap entry into a potential money making projects and trade(s).
Since the Repo Madness started in September 2019, when silver racked up extraordinary gains, that lifted all PM sector hearts, then in short order, dashed them to the ground, we have been posting various articles in our emails, and more recently on our Twitter page, including the latest LBMA /Comex Disconnect,
from various respected writers, showing that there are fractures everywhere in the markets.
We see this disparity in the Gold/Silver ratio, that reached a stunning 130 to 1 silver to gold. It has never ever been this high, and we all know, "what goes up, must come down", meaning a reversion to the mean is coming.
The writers are all speculating the Gold and Silver are going to boom after the huge selloffs and when the reversion comes to fruition, as it always has in the past. Maybe we will see an overshoot to the downside of under 30:1. Where will silver be then?
Impact Silver recently put out their 2019 production stats. We believe this is the closest direct comparison to the Bayhorse Silver Mine when we commence production, although the average inferred grades disclosed in our NI 43-101 report are 4 times that of Impact, and from one mine, not two.
We stay positive and despite the current grimness out there, conserve dollars and work towards a productive future for Bayhorse.
In closing, stay safe, and have a Happy, social distanced, Easter
