Business
Banyan Announces Closing $4.74 M Financing
VANCOUVER, BC / ACCESSWIRE / July 31, 2020 / Banyan Gold Corp . (the "Company" or "Banyan") (...
About this update from Banyan Gold Corp.
[{"type":"text","content":"Banyan Announces Closing $4.74 M FinancingVANCOUVER, BC / ACCESSWIRE / July 31, 2020 / Banyan Gold Corp. (the \"Company\" or \"Banyan\") (TSX-V:BYN) is pleased to announce, subject to approval by TSX-V, that it is closing the private placement announced July 8, 2020 (the \"Private Placement\"), and increased on July 29th for total proceeds of $4,740,000.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 14,000,000 Charity Flow Through Shares at $0.28, 2,000,000 Flow Through Shares at $0.25 and 1,600,000 Common Shares at $0.20 (together the \"Offering\").\"\"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 CEO. \"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 Corporation (9.3%), Victoria Gold Corporation (7.9%), Sprott (3%) and Osisko Gold Royalties (4.9%).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) (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 $33,930 on the financing.Certain insiders of the Company participated in the Private Placement for $125,000, comprised of 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 (\"...