Banyan Gold Co. [BYN-TSXV] said Friday July 20 that it has arranged a non-brokered $931,309 private placement to finance summer exploration at the Hyland and McQuesten projects in the Yukon and for general working capital.
Banyan’s flagship Hyland gold project is located approximately 70 km northeast of Watson Lake, along the southeast end of the Tintina gold belt.
The private placement consists of 7,001,370 flow-through units priced at 10 cents per unit and 3,082,293 non flow-through units priced at 7.5 cents.
On Friday, Banyan shares were unchanged at 6 cents and traded in a 52-week range of 13 cents and 0.055 cents.
Both the flow-through and non-flow-through units consist of one share and one-half of a non-flow-through share purchase warrant. Each full warrant is exercisable at 15 cents into one common share for a period of 24 month after closing.
Insiders are participating for $112,000 or 12%.
The warrants, which form part of the units, may have their expiry time accelerated at any time prior to the expiry of the warrants if the volume weighted average trading price of Banyan shares is greater than 30 cents for 20 consecutive trading days. At that point the company can give notice in writing to the warrant holders within 10 days of such an occurrence to inform them that the warrants will expire on the 30th day after the notice is given.
The Hyland main zone hosts a NI 43-101-compliant indicated resource of roughly 236,000 ounces. On top of that is an inferred resource of 288,000 ounces. The deposit-type is sediment-hosted, structurally controlled mineralization that is similar in style to mineralization found along the Carlin gold trend in Nevada.
The company also has an option to earn a 100% interest in 9,230 hectares of contiguous ground known as the Aurex-McQuestern claims from Victoria Gold Corp. [VIT-TSXV] and Alexco Resources Corp. [AXR-TSX, AXU-NYSE]. The project is located near the entrance to the road that leads into Victoria Gold’s Eagle Gold Project, which is currently in an advanced stage of development.
“With these options, Banyan will be the first company to consolidate ownership of these highly prospective intrusion-related gold properties that have been explored for precious metals since the turn of the last century,” said Banyan President and CEO Tara Christie during an interview with Resource World.
Meanwhile Banyan recently said it has commence the 2018 field exploration season with field-based trench, diamond drill and geochemical programs planned for the Hyland project.
“This season’s program on our Hyland Gold Project will focus on establishing mineral continuity between the current NI-43-101 compliant resource in the Main Zone and the Camp Zone, an area never tested before,” Christie said.
The company is planning to complete 1,200 metres of diamond drilling and 1,000 metres of trenching.