05:55:19 EDT Wed 23 Sep 2020
Enter Symbol
or Name

Banyan Gold Corp
Symbol BYN
Shares Issued 142,899,267
Close 2020-07-30 C$ 0.25
Recent Sedar Documents

Banyan Gold closes $4.74-million financing

2020-07-31 07:50 ET - News Release

Ms. Tara Christie reports


Subject to approval by the TSX Venture Exchange, Banyan Gold Corp. is closing the private placement announced July 8, 2020, and increased on July 29 for total proceeds of $4.74-million.

The company intends to use the net proceeds from the private placement to advance its mineral exploration and development projects and for general corporate purposes.

The financing includes a combination of 14 million charity flow-through shares at 28 cents, two million flow-through shares at 25 cents and 1.6 million common shares at 20 cents.

"With the closing of the financing, Banyan has $6.1-million in working capital, placing us in a strong position to materially advance AurMac," commented Tara Christie, president and chief executive officer. "We are very pleased to welcome new institutional shareholders and grateful for the continued support of existing major shareholders that participated in the financing. Banyan is committed building ounces at AurMac and positioning the project to move forward."

At the close of the private placement, the major shareholders will be Alexco Resource Corp. (9.3 per cent), Victoria Gold Corp. (7.9 per cent), Sprott (3 per cent) and Osisko Gold Royalties (4.9 per cent).

The flow-through gross proceeds component received from the sale to subscribers of the charity flow-through shares and flow-through shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act (Canada) on the company's properties in the Yukon Territory, and renounced to such subscribers effective not later than Dec. 31, 2020. Such Canadian exploration expenses will also qualify as flow-through mining expenditures as defined in Subsection 127(9) of the Tax Act. In connection with the closing of the private placement, the company will pay a cash finder's fee in the amount of $33,930 on the financing.

Certain insiders of the company participated in the private placement for $125,000, comprising 468,000 flow-through shares and 40,000 common shares, respectively. Such participation represents a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25 per cent of the company's market capitalization.

Under applicable Canadian securities laws, all securities issued pursuant to the private placement are subject to, among other things, a statutory hold period of four months and one day. The private placement remains subject to the final approval of the TSX Venture Exchange.

Upcoming events

Upcoming events are listed on the company website and include the following.


  • Aug. 5 -- hosted by StreetCents Media, moderated by Robert Sinn;
  • Aug. 20 -- hosted by Invest Yukon;
  • Sept. 22, 2020 -- hosted by Adelaide Capital.

  • Mines and Money -- virtual conference -- Aug. 31 to Sept. 1, 2020
  • Precious Metals Summit Beaver Creek, virtual conference -- Sept. 15 to 17, 2020.

Qualified person

Paul D. Gray, PGeo, vice-president of exploration for the company, is a qualified person as defined under NI 43-101 and has reviewed and approved the content of this news release.

COVID-19 update

Banyan has taken pro-active measures to protect the health and safety of the company's employees and communities from COVID-19 and exploration activities in 2020 will have additional safety measures in place, following and exceeding all the recommendations made by the Yukon's chief medical officer.

About Banyan Gold Corp.

Banyan's primary asset AurMac is adjacent to Victoria Gold's new Eagle gold mine, in Canada's Yukon territory, which announced commercial production on July 1, 2020.

We seek Safe Harbor.

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