North Bay Resources Inc. (NBRI): EB-5 Funding Update
SKIPPACK, PA--(Marketwire - Oct 1, 2012) - North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to report that the federal EB-5 Pilot Program, the funding vehicle the Company is utilizing for the Ruby Gold Project, was formally extended for another three years on Friday, September 28, 2012, when President Obama signed into law S. 3245, thereby assuring that the program will continue intact through September 30, 2015.
The U.S. Congress originally created the fifth employment-based preference (EB-5) immigrant visa category in 1990 by the enactment of the Immigration and Nationality Act of 1990 (the "EB-5 Program") for qualified foreigners seeking to immigrate to the US by investing in a business that benefits the U.S. economy through the creation of new full-time jobs for U.S. persons. In 1992 Congress created the EB-5 Pilot Program (the "EB-5 Pilot Program") by the enactment of Section 610 of Public Law 102-395 to encourage immigration through the EB-5 Program and the implementation of EB-5 Regional Centers to facilitate new investment. Both the regular EB-5 Program and the EB-5 Pilot Program are administered by the United States Citizen and Immigration Services (USCIS), a division of the Department of Homeland Security.
When Congress originally authorized the creation of the EB-5 program in 1990, as amended in 1992, the law included a sunset provision that allowed the EB-5 Pilot Program to automatically expire unless further extended by an act of Congress. Over the past twenty years, Congress has routinely extended the sunset date several times, most recently in 2009 when the sunset date was extended to September 30, 2012.
However, with 2012 being an election year, the extension of the EB-5 Pilot Program unexpectedly became somewhat of a political football inside the beltway. This introduced a great deal of uncertainty into the EB-5 market, as various factions in Congress seemed to find some political advantage in allowing, or at least threatening to allow, the program to expire. As a result, many EB-5 investors that were otherwise ready to invest became increasingly unwilling to tie up their funds in escrow until they saw whether or not the EB-5 Pilot Program would even exist past September 30, 2012. Fortunately, the US Congress authorized a three year extension of the EB-5 Pilot Program when it passed S. 3245 on September 13, 2012, and when President Obama signed it into law last Friday, it then ceased to be a cause of concern for EB-5 investors.
We are therefore pleased to report that our EB-5 funding initiative continues to move forward, and we remain optimistic that it will be completed in the very near future.
The Company notes that this is not the first time over the past year that the Company has had to contend with political headwinds where foreign investor perception of the EB-5 program's viability was concerned. In October 2011 Senator Charles Schumer (D-NY), with the support of Warren Buffet, introduced a bill in the US Congress that would give a residential visa to foreign investors who purchased homes in the US for at least $500,000. While the bill was well-intended as a way to stimulate the US real estate market, it instantly became competitive with the EB-5 market. An EB-5 investment, which also requires a minimum investment of $500,000, is required to be "at-risk" and unsecured, while the Schumer proposal offered the opportunity for a foreign investor to get a visa that would be essentially risk-free, as the purchase of a house secured and virtually guaranteed their investment. This news put a chill in the EB-5 market, as some investors waited to see whether the bill had a chance of being passed. As time went on it became apparent that the bill would never reach the floor of the Senate to be put to a vote, and the EB-5 market no longer looks at it as a realistic alternative. However, much time was lost in the interim while investors stayed on the sidelines waiting to see how it played out.
With the EB-5 Pilot Program now renewed for another three years, the vetting of investors overseas is now continuing. This vetting primarily consists of verifying that each investor is able to comply with the rigorous provisions of the US Patriot Act and other similar protective regulations intended to insure that foreign capital coming into the US derives from lawful sources. EB-5 regulations also require full investor transparency and diligence to insure that their funds are not tainted. It is up to each investor, not the Company, to provide this evidence. This is a very time consuming effort, for unlike the U.S. where documentation of income is a standard practice and commonplace, some overseas investors are often reluctant to submit to this type of scrutiny, especially in jurisdictions where the local culture and traditions often encourage secrecy where financial matters are concerned. And in many instances where the investor is more than willing to disclose the source of their funds, documentation to prove it is often difficult to substantiate. Thus the vetting of investors to increase our confidence that their visa petitions will be approved by USCIS has presented quite a challenge, but one which we continue to work through.
North Bay CEO Perry Leopold commented, "If it were up to us this would have all been completed a long time ago. But these international and political dynamics are totally out of our control, and so we have to be patient as the process runs its course. Our partner in this EB-5 effort, ACG Consulting, has been working tirelessly through all of these obstacles and headwinds and remains determined, as we do also, to see it through to completion. Their unflinching confidence that we will complete the funding soon continues to bolster our optimism that we will soon achieve the goals we have set for ourselves."
About The EB-5 Program
The EB-5 Program was authorized by the US Congress with the intent to help stimulate the US economy by creating new jobs, especially in rural areas and areas of high unemployment. Congress originally created the fifth employment-based preference (EB-5) immigrant visa category in 1990 by the enactment of the Immigration and Nationality Act of 1990 (the "EB-5 Program") for qualified foreigners seeking to invest in a U.S. business that benefits the U.S. economy by creating or saving ten (10) full-time jobs for U.S. persons. In 1992 Congress created the EB-5 Pilot Program (the "EB-5 Pilot Program") by the enactment of Section 610 of Public Law 102-395 to encourage immigration through the EB-5 Program and the implementation of EB-5 Regional Centers to facilitate new investment.
The EB-5 Program allows foreign investors to legally immigrate to the US by investing a minimum of $500,000 in a new commercial enterprise located within a Targeted Employment Area (rural areas and areas of high unemployment, or "TEA"). If the new enterprise is located outside of a TEA, the amount of the required investment is a minimum of $1,000,000. The law requires that the capital invested will directly benefit the US economy by creating at least 10 full-time jobs for each such investment. The program is administered by the United States Citizenship and Immigration Services ("USCIS") pursuant to the Immigration and Nationality Act of 1990, as amended, and Section 610 of Public Law 102-395, as amended. USCIS is currently a division of the Department of Homeland Security.
The Association to Invest In the USA (IIUSA) https://iiusa.org/, a not-for-profit EB-5 industry trade association of active EB-5 Regional Centers, attorneys, financial advisers, economists, broker/dealers, consultants, and other EB-5 related service providers estimates that since 2003, Regional Centers have invested well over $3.1 billion of foreign capital in the U.S. economy, creating well over 65,000 jobs for U.S. workers -- all at no cost to the U.S. taxpayer.
About The Ruby Gold Project
The Ruby Mine, a/k/a the Ruby Gold Project, was formally approved by USCIS in July 2011 as a qualified EB-5 project, and has been authorized to raise $7.5M from foreign investors through the federal EB-5 program.
The Ruby Mine is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 250,000 ounces of gold since the 1850's, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, consisting 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 about the Ruby Mine, please visit the Ruby page on the North Bay website 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 over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.
In the US, the Company owns the Ruby Gold Mine in Sierra County, California, and is presently planning to acquire additional operating mines in the western US.
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.
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 subsequent Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml
NORTH BAY RESOURCES INC.
SOURCE: North Bay Resources Inc.