North Bay Resources Inc (NBRI) Plans Ruby Gold Spinoff
SKIPPACK, PA--(Marketwired - Jan 15, 2014) - North Bay Resources
Inc. (OTCQB: NBRI) ("North Bay" or the "Company") announced today
that the Board of Directors has approved a plan to spinoff the
Company's wholly-owned subsidiary, Ruby Gold, Inc. ("RGI") as a
separate independent company.
The Board of Directors of the Company has determined that would
it be in the best interest of shareholders to unconsolidate and
segregate the assets and liabilities of RGI as a separate and
distinct company by way of a spin-off. The objective of this plan
is to unlock the intrinsic value of the Ruby Mine that the Company
currently believes is significantly undervalued by the
market. The spinoff is also expected to enhance access to
financing by allowing the financial community to focus separately
on each business. As well, with the Ruby Mine now entering the
production phase of its business plan, the Company believes that
our mining projects in Canada, some of which are also close to the
production phase, are being completely ignored by the market and
similarly undervalued. Accordingly, a spinoff that results in
two separate companies is expected to increase shareholder value by
bringing a fairer market valuation of our total diversified assets
and future prospects into better focus.
As part of this strategic plan, North Bay shareholders are
expected to receive shares of common stock of RGI as a special
stock dividend based on a ratio yet to be determined. Shareholders
who are eligible to receive such stock dividend will be holders of
common stock of North Bay as of the record date, which has yet to
be set by the Board of Directors of the Company. The Board of
Directors of the Company will determine the date for the
distribution of shares from the spin-off and a news release
announcing the record date will be issued at that time. As part of
the spinoff plan, North Bay and RGI have entered into a
joint-venture agreement that forms the basis for the continued
participation by North Bay in the Ruby Gold project.
To initiate the execution of the plan, RGI has filed a Form 10
with the SEC, which once effective will make RGI a fully-reporting
public company. When the spinoff is complete and the stock
dividend is fully distributed, existing North Bay shareholders as
of the prospective record date will then each own stock in both
companies. Upon FINRA approval of a stock symbol for RGI, its
shares are expected to then become available for trading on the
OTCQB.
North Bay's CEO Perry Leopold commented, "This spin-off will
allow North Bay to take advantage of current market conditions and
further build on the Ruby Gold project as well as our ongoing
projects in Canada. It will also enable RGI to independently
operate and fund the Ruby Gold project, including the further
exploration and drilling programs necessary to expand the long-term
potential of the resource. We believe this action will unlock the
value of our assets and increase shareholder value in a way that
allows our shareholders to participate in the future growth of two
separate companies."
About Ruby Gold, Inc.
Ruby Gold, Inc. is the owner and operator of the Ruby Mine (the
"Ruby"), a fully-permitted underground placer and lode mine located
near Downieville in Sierra County, California. The Ruby is
known to have produced over 350,000 ounces of gold since the
1850's, and is considered to be part of the northern extension of
the historic Mother Lode system. The Ruby property covers
approximately 1,755 acres, only a small portion of which has been
explored to date. The property consists of the subsurface
mineral rights of two patented claims totaling approximately 435
acres and 30 unpatented claims containing approximately 1,320
acres. The equipment, fixed assets, and infrastructure in
place include a 1,000 yard per day placer wash plant, 50-ton per
day quartz mill, 6,000 feet of tracked haulage, and related support
equipment needed for underground mining operations. The
property also features an excellent system of roads, is accessible
via paved highway from Reno or Sacramento, has abundant water and
timber available for mining purposes, and has PG&E power
available on-site. For further information on the Ruby Mine,
please visit the Ruby web page at
http://www.northbayresources.com/ruby/.
About North Bay
Resources Inc.
North Bay Resources Inc. (OTCQB: NBRI) is a fully-reporting
junior mining company with current operations in the US and
Canada.
In the US, the Company's subsidiary, Ruby Gold, Inc., owns and
operates the Ruby Mine in Sierra County, California. The Ruby Mine
is a fully-permitted underground placer and lode mine located in
the northern extension of the historic Mother Lode system. The Ruby
is known to have produced over 350,000 ounces of gold since the
1850's, including some of the most spectacular gold nuggets on
record. The Ruby Property covers approximately 1,755 acres,
only a small portion of which has been explored to date.
In British Columbia, the Company holds 100% ownership of a
multitude of significant mining properties. These include two
gold-platinum placers, the Fraser River Project and the Monte
Cristo, and lode projects such as the advanced-stage Mount
Washington Project on Vancouver Island, the Brett West/Bouleau
Creek Gold project near Vernon BC, the Coronation Gold project in
the historic Slocan Mining district, and the Tulameen Platinum
Project near Princeton, BC. In addition to its many precious
metal projects, the Company also owns additional prospective
projects that host strategic mineral resources such as Vanadium,
Crystalline Flake Graphite, Olivine, and Rare Earth Elements
(REE).
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.
Additional information on the Company's many properties and
ongoing projects is available at the Company website at
http://www.northbayresources.com.
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 Form 10-K
which may be secured from us, or from our website at
http://www.sec.gov/edgar.shtml
Contact: Perry Leopold CEO North Bay Resources Inc. 215-661-1100
http://www.northbayresources.com
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