Banyan Gold plans $16 million placement, shares up

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Banyan Gold Co. (BYN-TSXV) said Monday it is planning to complete a fully-subscribed non-brokered private placement of up to $16 million.

It said the proposed private placement would consist of 30.4 million charity flow-through shares priced at 38 cents per share, raising gross proceeds of $11.5 million, plus 6.3 million flow-through shares priced at 35 cents per share, raising another $2.2 million, as well as 8.03 million shares priced at 28 cents, for proceeds of $2.25 million.

The company said it intends to use the net proceeds from the private placement to advance its mineral exploration and development projects and for general corporate purposes.

Banyan shares advanced on the news, rising 3.7% or $0.01 to 28 cents on volume of 374,250. The shares are currently trading in a 52-week range of 39 cents and 16.5 cents.

Banyan has been engaged in diamond drilling at its AurMac property in the Canadian Yukon. The aim is to test the expansion potential of the Powerline Deposit.

The AurMac Project has a NI 43-101-compliant indicated inferred resource of 52.6 million tonnes of 0.535 grams per tonne gold at a 0.2 g/t gold cut-off, or 903,945 ounces of gold. This resource is located in two zones, the Airstrip and Powerline zones.

This resource is open in all directions and at depth, and has the potential to host a multi-million-ounce deposit, the company has said.

The Airstrip Zone contains an inferred mineral resource of 46 million tonnes at an average gold grade of 0.524 g/t for a total of 774,926 ounces of gold. It is open to resource expansion to the east, west and downdip.

Powerline hosts an inferred resource of 6.6 million tonnes of grade 0.610 g/t gold or 129,019 ounces.

The company said AurMac represents an open-pit mineable bulk tonnage target that is advantaged by existing transportation infrastructure, including the main Yukon government highway system and an all-season road to Victoria Gold Corp.’s [VIT-TSXV] adjacent Eagle mine, which went into commercial production in July, 2020.

The Eagle Mine is connected to the Yukon power grid and a commercial airstrip used to transport personnel is located 80 kilometres to the south near the village of Mayo.

The 173-square-kilometre AurMac property is also adjacent to Alexco Resources Corp.’s (AXR-TSX, AXU-NYSE) Keno Silver District and is highly prospective for structurally controlled-intrusive related gold-silver mineralization.

Banyan’s strategic shareholders include Alexco Resources, Victoria Gold and Osisko Development Corp. [ODV-TSXV].

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