SOURCE: North Bay Resources Inc.

December 03, 2009 10:02 ET

North Bay Resources Inc. (NBRI) Files Public Disclosures on $5 Million Financing Facility

SKIPPACK, PA--(Marketwire - December 3, 2009) - North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") announced today that the documents pertaining to its recently-secured $5 Million equity line of credit have been filed for public viewing with the Pink Sheets. Shareholders and other interested parties can now access them on the NBRI page at at

As previously announced on October 21, 2009, the Company has secured $5 Million in financing under an equity line of credit with Tangiers Investors, LP ("Tangiers"). A summary of the terms of the agreement made public in the documents provides that:

--  North Bay has the right, but not the obligation, to draw down on the
    equity line of credit by selling to Tangiers shares of the Company's common
    stock for a total purchase price of up to $5 Million.
--  Tangiers will pay the Company 90% of the lowest volume weighted
    average price of the Company's common stock during the pricing period as
    quoted by Bloomberg, LP on the Over-the-Counter Bulletin Board ("OTCBB").
    This will amount to a 10% discount to the prevailing market price of NBRI
    during the pricing period.
--  Tangiers' obligation to purchase shares of the Company's common stock
    under the Securities Purchase Agreement is subject to certain conditions,
    including the Company obtaining an effective registration statement for
    shares of the Company's common stock sold under the Securities Purchase
--  Each tranche is limited to $100,000 per 10 consecutive trading days
    after the advance notice is provided to Tangiers.
--  The Company has agreed to issue Tangiers $85,000 in restricted stock
    as a one-time commitment fee.

North Bay CEO Perry Leopold explained, "We have chosen to pursue this type of funding because it will make a significant amount of cash available to us with the advantage of allowing us to decide when, and how much, we will draw from it. We will be in control of the draw down amounts and hope to be able to utilize it whenever the Company deems that such funds are needed. Our objective will be to draw down on the funding during periods of positive results for us and during stages when our stock price is rising, in order to control and minimize, as much as possible, the potential dilution for our current and future stockholders." Mr. Leopold continued, "I would like to assure shareholders that we consider this form of funding to be one of the most shareholder-friendly facilities available in the market today. Like a home equity line, it does not have to be used unless and until the need arises. And unlike a home equity line, it does not involve any debt whatsoever. In addition, the structure provides that whenever we should draw upon it, any shares issued will be near prevailing market prices, and the number of shares will be accordance with the lowest average daily dollar volume at the time of issuance so as to be as least disruptive to the market as possible. We invite shareholders to inspect the documents to satisfy any concerns they may have about the facility."

About Tangiers Investors, LP

Tangiers Investors, LP is a Southern California headquartered alternative investment fund managed by Tangiers Capital, LLC. Tangiers Investors, LP seeks to provide the best possible risk-return tradeoff for its limited partners by making direct investments into foreign and domestic private and public micro-cap companies. Tangiers Investors, LP has established a network of world-wide deal sources and is positioned to capitalize on the growing number of opportunities both inside and outside of the United States.

About North Bay Resources Inc.

North Bay Resources Inc. (PINKSHEETS: NBRI) is a junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada. 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.


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.

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