North Bay Resources, Inc. (OTCPK:NBRI) announced that it has entered into a purchase agreement for private placement of a secured convertible promissory note with existing investor, Typenex Co-Investment, LLC for gross proceeds of $255,000 on May 8, 2014. The note has a principal value of $280,000 and is being issued at a discount of $25,000. The note will bear interest at 10% per annum and will mature in 13 months from the date of announcement. The note is self amortizing, such that it may be repaid in cash in eight monthly installments of $35,000 plus accrued interest beginning 180 days from the announcement date. The note is convertible into common shares of the company at a conversion price equal to 70% of the arithmetic average of the two lowest volume weighted average prices of the company's shares during the 20 consecutive trading day period immediately preceding the date of such conversion. The conversion cannot be made prior to 180 days from the effective date. The company retains the option of pre-paying the note at any time at an amount equal to 125% of the outstanding principal and the accrued and unpaid interest. Upon the occurrence of an event of default, the interest shall accrue on the outstanding balance both before and after judgment at the rate of 22% per annum. Carter Terry & Company will act as the broker-dealer to the company. The company has agreed to pay $5,000 to the investor to cover the investor's legal fees, accounting costs, due diligence, monitoring, and other transaction costs incurred in connection with the transaction.

On the same date, the company announced that it has closed the first tranche of the transaction. The company received $50,000 in this tranche. The agent received $4,000 as part of this tranche.

On June 9, 2014, the company received $50,000 in its second tranche.

On August 8, 2014, North Bay Resources, Inc. closed the transaction. The company received $50,000 in its third tranche. The company has received $150,000 in total funding from the transaction. The company has paid $8,000 to the dealer in the transaction. The company has received $150,000 in the transaction.