Business
Banyan Announces $4.3 M Financing, Begins Phase 2 AurMac Exploration Program
VANCOUVER, BC / ACCESSWIRE / July 8, 2020 / Banyan Gold Corp . (the "Company" or "Banyan") ( ...
About this update from Banyan Gold Corp.
[{"type":"text","content":"Banyan Announces $4.3 M Financing, Begins Phase 2 AurMac Exploration ProgramVANCOUVER, BC / ACCESSWIRE / July 8, 2020 / Banyan Gold Corp. (the \"Company\" or \"Banyan\") (TSX-V:BYN) is pleased to announce a private placement financing of up to $4.3M. Alexco Resource Corporation, Victoria Gold Corporation and Osisko Gold Royalties indicate they will participate pro rata along with other strategic and current shareholders. This will allow the Company to advance a Phase 2 Exploration Program at AurMac. Phase 2 exploration will include additional diamond drilling, geotechnical drilling, metallurgical test work, environmental baseline data collection and community consultation. Further details of the expanded program will be released in the coming weeks.The Company proposes to raise up to $4.3 M with a combination of up to 12,500,000 Charity Flow Through Shares at $0.28, up to 2,000,000 Regular Flow Through Shares at $0.25 and 1,500,000 regular shares at $0.20 (together the \"Offering\"). The financing is expected to close on or before July 28, 2020 and the shares issued will be subject to the customary hold period. There will be no warrants issued with the Offering.\"Our current significant shareholders and new strategic shareholders participating in this financing are a strong endorsement of the growth potential of AurMac and confidence in our team.\" stated Tara Christie, President and CEO. \"With a strong treasury, we are now well positioned to advance this project to the next level through 2020 and 2021. Banyan is taking this opportunity in finance at a time when there is strong interest in road accessible, near surface gold projects in an enviable jurisdiction, adjacent to two operating mines.\"The flow through gross proceeds component received from the sale of the 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 subscribers in the Offering effective 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. There may be fees up to 6% on a portion of this financing.Closing of the Offering is expected to occur on or about the week of July 28, 2020, and is subject to t...