Business
Banyan Gold Announces Closing $11.9 M First Tranche of Financing
VANCOUVER, BC / ACCESSWIRE / July 28, 2021 / Banyan Gold Corp . (the " Company " or " Banya...
About this update from Banyan Gold Corp.
[{"type":"text","content":"Banyan Gold Announces Closing $11.9 M First Tranche of FinancingVANCOUVER, BC / ACCESSWIRE / July 28, 2021 / Banyan Gold Corp. (the \"Company\" or \"Banyan\") (TSXV:BYN) is pleased to announce, subject to TSX-V approval, it is closing the first tranche of $11,928,571 of a total $16 million private placement (the \"Private Placement) previously announced on July 19, 2021.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 2021-22 Exploration Programs at AurMac are intended to include additional diamond drilling, geotechnical drilling, metallurgical test work, resource update, environmental baseline data collection and the commencement of a Preliminary Economic Assessment (\"PEA\") Study.The first tranche includes 19,642,858 Charity Flow Through Shares priced at $0.38, 6,326,530 Regular Flow Through Shares priced at $0.35 and 8,035,715 regular shares prices at $0.28. A second tranche of Charity Flow Through Shares for $4.07 million is expected to close on or before August 14, 2021.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, 2021. 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 first tranche, the Company is expected to pay a finder's fee of $420,000, subject to all necessary regulatory approvals. The shares issued will be subject to the customary 4 month plus a day hold period.Certain insiders of the Company participated in the first tranche for 1,426,387 in Flow Through Shares or $499,000. 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,...