Business
Banyan Announces Closing $2.5 M Financing
VANCOUVER, BC / ACCESSWIRE / December 30, 2020 / Banyan Gold Corp . (the " Company " or " B...
About this update from Banyan Gold Corp.
[{"type":"text","content":"Banyan Announces Closing $2.5 M FinancingVANCOUVER, BC / ACCESSWIRE / December 30, 2020 / Banyan Gold Corp. (the \"Company\" or \"Banyan\") (TSXV:BYN) is pleased to announce, subject to approval by TSX-V, that it is closing the private placement (the \"Private Placement\") announced on December 21, 2020.The Company intends to use the net proceeds from the Private Placement to expand its' exploration activities in 2021 on its' Yukon based properties.The financing includes 5,357,143 Flow Through Shares at $0.28 and 3,076,924 Charity Flow Through Shares priced at $0.325 for gross proceeds of $2,500,000.\"With a strong treasury and a project located adjacent to mines of our two largest shareholders, Victoria Gold and Alexco Resources, we are now well positioned to strategically advance this project to the next level in 2021 with an increase in planned exploration activities.\" stated Tara Christie, President and CEO.The flow through gross proceeds 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) (the \"Tax Act\") on the Company's properties in the Yukon Territory, and renounced to such subscribers effective not later than December 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 $33,860 on the first tranche of the financing.Certain insiders of the Company participated in the Private Placement for $280,380, comprised of 1,001,359 Flow Through Shares. Such participation represents a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), 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% of the Company's market capitalization.Under applicable Canadian securities laws, all securities issued pursuant to the first tranche of the Private Placement are subject to, among other things, a statutory hold...