North Bay Resources Inc. (OTC:NBRI) announced it has acquired a majority stake in the Bishop Gold Mill, located six miles north of Bishop, California.
The mill, which features a flotation circuit capable of processing up to 96 tons per day, is currently permitted for operation pending certain conditions and minor infrastructure completions.
North Bay acquired a 55% interest in the mill through a share purchase agreement with CMC Metals and 1436132 BC Ltd, the current owner.
The deal involves North Bay taking over 55.5% of 0877887 BC Ltd., the company that holds the Bishop Gold Mill as its primary asset. The terms include staged cash payments totaling US$100,000 and C$400,000 in shares of North Bay.
North Bay has also assumed operational control of the mill. Initial power-up and testing of the mill's equipment, including the jaw crusher, ball mill, shaker table, and flotation tanks, have been completed successfully. Despite not having been operated since its permitting in 2019, the equipment remains in near-new condition, with necessary bushing replacements on the ball mill scheduled to ensure continuous operation.
Discussions and negotiations for initial feedstock are underway, targeting 10,000 tons grading one ounce per ton, equating to approximately 8,500 ounces of gold at an 85% recovery rate. This would yield an estimated $20 million in gold at current prices.