North Bay Resources, Inc. (OTCPK:NBRI) announced that it has entered into an agreement for private placement of a $100,000 convertible promissory note with Zaco Investments LLC for gross proceeds of $10,000 on July 24, 2015. The note will have a maturity of 12 months from issuance and will bear interest at a rate of 5% per annum. The company has the option to prepay the note at no penalty.

The lender has the right to convert all or part of the outstanding and unpaid principal sum and accrued interest into common shares, if the note is not repaid within 180 days. The note will be convertible after first 180 days after issuance. The conversion price will be 80% of the average of the two lowest volume weighted average prices on the previous 15 trading days prior to the date of conversion.

The lender will not hold more than 4.99% stake in the company upon conversion.