North Bay Resources Inc (NBRI)

[Huggy Bear]

Hi sarshee, hope all is well with you and yours. Been fishing lately?

Tangiers seems to be fine with lending more money to NBRI

Tangiers primary interest is in line with all the convertible debt financiers, to make good coin on their "investments", either by selling shares they receive at considerable discount or repayment of original amounts with interest charges that make the mafia look generous. Being as they are underwater on all the notes with NBRI at set conversion prices much higher than current pps, it is in the interest of Tangiers to be as lenient with NBRI as possible to give them a chance to go into production and bring the pps up via increase in fundamental value and resulting pps appreciation. Then they can convert the notes from spring 2012 which are currently underwater. The only Tangiers note from 2012 that is not underwater is the last one with a floor conversion price of .0129. That is why this business arrangement has worked out "well" for NBRI so far as you put it, only because the NBRI shareprice is below the set conversion prices. I agree that it is advantageous to NBRI and current shareholders that Tangiers has given them an increase in LOC and two years before it matures. They are giving NBRI every fair chance to succeed in economic terms so they can get their original money back. Seems cut and dry to me on that one.

Yet it also seems that this new LOC with Tangiers has restrictions attached, or else Perry could have drawn off of it for current cash needs like paying off the Toanquint note so it doesnt convert and the JMJ note as well. Fundamentally one must wonder where the funds will come from to pay off the Ruby mine note which goes back to 85K/month starting March 2013. Can the Tangiers LOC be drawn from to meet this obligation? It is unclear. Call Perry. There is 1.7M still owed on the Ruby mine note. From the recent 8-K it seems clear that the JMJ 550K LOC has been drawn from to pay off the 2nd installation on the Toanquint note. Probably will be as well next month when the final installation is due. And that JMJ 550K convertible LOC is free to convert as soon as it is drawn from.

Anyone see why I was stressing that it is not a good idea to fund a mining operation with convertible debt? It has gotten hairy. Stay prudent those of you who are pragmatic people. The days of the unfounded pumpfest working its juju are over, and rightly so as reality has come into play.

In the end, fundamentals always trump anyway. NBRI can succeed in the long run if they get some fundamental value behind the stock, i.e. actual mining at profit.