SKIPPACK, PA -- (Marketwired) -- 06/12/13 -- North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to announce it has entered into a joint-venture ("JV") agreement on the Company's 100%-owned Fraser River Project near Lytton, British Columbia, with Solid Holdings Ltd. ("Solid"), a private company based in Houston, BC.
Solid has over 30 years of experience as a mining contractor, and has recently expanded its business with a custom-built processing facility in Houston, BC that is specifically designed to process black sand concentrates. Solid's process uses a proprietary method to maximize the amount of precious metals recoverable from black sand concentrates, such as those expected to be produced at the Fraser River Project.
The terms of the agreement call for Solid to provide all equipment, personnel, and related expenditures required to initiate and sustain mining operations at the Fraser River Project. North Bay will be responsible for maintaining the property in good standing and securing the permits required for mining operations to proceed. North Bay will retain 100% ownership of the property, and will be paid a 20% net smelter royalty ("NSR") on all metals recovered from operations, with Solid retaining 100% of the net profits following payment of the NSR. Solid will be deemed the project operator, and will be responsible for the day-to-day operations. The initial agreement has been executed as a Memorandum of Understanding between the parties, and will be formalized into a definitive agreement once our mining permits are issued and prior to the start of mining operations.
The Company notes that our former contractor, P. Wright Contracting, has agreed to remain with the project as a consultant and subcontractor. Our project geologist and manager, Dan Oancea, P. Geo, will also remain with the project as the Company's on-site liaison to the JV, with supervisory responsibilities to manage the geological integrity of the deposit, and to establish an audited chain-of-custody for all metals produced from mining operations.
The Company is also pleased to report that we have received notification from the Ministry of Mining that our Emergency Response Plan ("MERP") for the Fraser River Project has been accepted. As well, the Company has been asked to provide an additional $3,000 to increase the reclamation bond currently on deposit, which has been paid. The Mining Inspector has also informed us that our permit application and mining plan has been forwarded to other government resource agencies and area First Nations for comment and review. We will continue to provide updates on our permit status as well as other operational aspects of the project as soon as there is additional news to report.
Mr. Dan Oancea, P. Geo., is the Qualified Person as defined by National Instrument 43-101 who has reviewed this news release for technical accuracy.
About Solid Holdings Ltd.
Solid Holdings Ltd. is a private company headed by Stan Spletzer, of Houston, British Columbia. Mr. Spletzer, president of Solid Holdings Ltd, brings over 30 years of contracting experience related to aggregate mining, road construction, logging, and silviculture in northern British Columbia. Solid owns and operates a gold processing plant specializing in black sand recovery, along with a lab for assaying and smelting in Houston, BC. He presently holds contracts with several local mining projects.
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