Business
Banyan Gold Announces Closing of Upsized $17 M Private Placement Financing
VANCOUVER, BC / ACCESSWIRE / June 27, 2022 / Banyan Gold Corp . (the " Company " or " Banya...
About this update from Banyan Gold Corp.
[{"type":"text","content":"Banyan Gold Announces Closing of Upsized $17 M Private Placement FinancingVANCOUVER, BC / ACCESSWIRE / June 27, 2022 / Banyan Gold Corp. (the \"Company\" or \"Banyan\") (TSX-V:BYN)(OTCQB:BYAGF) is pleased to announce, subject to final TSX-V approval, a non-brokered private placement (the \"Private Placement\") of $17 million (‘M') in gross proceeds. This is an increase of $0.5 M from the previous announcement on June 8th.\"With the completion of this financing, Banyan will be fully funded into 2023 for continued growth and development at AurMac. The 2022 resource update added 3.1 million ounces with 40,000 of drilling. With over 26,000 metres of post resource drilling completed, of the 60,000 metres planned, Banyan is well positioned to significantly add ounces at Aurmac.\" stated Tara Christie, President and CEO. \"We are also pleased at the continued support of Franklin Gold and Precious Metals Fund and Victoria Gold and the strong demand in our financing that saw us ultimately upsize it by $0.5 million in volatile market conditions.\"The Private Placement will consist of 16,210,500 Charity Flow Through Shares priced at $0.63 per share for gross proceeds of $10,212,615.00; 5,334,000 Flow Through Shares priced at $0.55 per share for gross proceeds of $ 2,933,700.00; and 8,662,321 Shares priced at $0.45 for gross proceeds of $ 3,898,044.45.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 2022-23 Exploration Programs at the AurMac Property are intended to include in excess of 60,000 metres (\"m\") of diamond drilling, geotechnical drilling, metallurgical test work, and environmental baseline data collection towards a resource update and commencement of a Preliminary Economic Assessment (\"PEA\") Study.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, 2022. Such Canadian exploration expenses will also qualify as \"flow-through mining expenditures\" as defined i...