Banyan Announces Closing $2.5 M Financing
BANYAN ANNOUNCES CLOSING $2.5 M FINANCING
December 30, 2020 TSX-V: BYN
VANCOUVER, B.C., December 30, 2020 – Banyan Gold Corp. (the "Company" or "Banyan")
(TSX-V: BYN) is pleased to announce, subject to approval by TSX-V, that it is closing the private
placement (the “Private Placement”) announced on December 21, 2020.
The Company intends to use the net proceeds from the Private Placement to expand its’
exploration activities in 2021 on its’ Yukon based properties.
The financing includes 5,357,143 Flow Through Shares at $0.28 and 3,076,924 Charity Flow
Through Shares priced at $0.325 for gross proceeds of $2,500,000.
“With a strong treasury and a project located adjacent to mines of our two largest shareholders,
Victoria Gold and Alexco Resources , we are now well positioned to strategically advance this
project to the next level in 2021 with an increase in planned exploration activities ." stated Tara
Christie, President and CEO.
The flow through gross proceeds 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 s uch subscribers effective not
later than 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. In connection with
the closing of the Private Placement , the Company will pay a cash finder’s fee in the amount of
$33,860 on the first tranche of the financing.
Certain insiders of the Company participated in the Private Placement for $ 280,380, comprised
of 1,001,359 Flow Through Shares . 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, nor the consideration paid, exceed 25% of the Company’s market
capitalization.
Under applicable Canadian securities laws, all securities issued pursuan t to the first tranche of
the Private Placement are subject to, among other things, a statutory hold period of four months
and one day. A total of $38,660 in finders’ fees will be paid. The Private Placement remains
subject to the final approval of the TSX Venture Exchange (the “TSX-V”).
Upcoming Events
AME Roundup 2021 – Virtual Presentation January 21, 2021
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Qualified Person
Paul D. Gray, P.Geo., Vice President of Exploration for the Company, is a “qualified person” as
defined under NI 43-101 and has reviewed and approved the content of this news release.
COVID-19 Update
Banyan has taken proactive measures to protect the health and safety of our employees and
communities from COVID 19 and exploration activities in 2020 have additional safety measures
in place, following and exceeding all the recommendations made by the Yukon’s Chief Medical
Officer.
About Banyan
Banyan's primary asset AurMac is adjacent to Victoria Gold's new Eagle Gold Mine, in Canada’s
Yukon Territory, which announ ced commercial production on July 1, 2020. The AurMac initial
resource of 903,945 oz Au (see Table 1 below) was announced in May 2020. Our major strategic
shareholders include Osisko Gold Royalties, Sprott Funds, Alexco Resource Corp., and Victoria
Gold Corporation. Banyan is focused on gold exploration projects that have the geological
potential, size of land package and proximity to infrastructure that is advantageous for a mineral
project to have potential to become a mine. Our Yukon based projects both fit this model and our
objective is to gain shareholder value by advancing projects in our pipeline.
The 173 sq km AurMac Property lies 40 km from Victoria Gold's Eagle Gold Mine and adjacent
to Alexco 's Keno Hill Silver District and is highly prospective for structurally controlled, intrusion
related gold-silver mineralization. The property is located adjacent to the main Yukon highway
and just off the main access road to the Victoria Gold open-pit, heap leach Eagle Gold mine. The
AurMac Property benefits from a 3 -phase powerline, existing Yukon Energy Corp. switching
power station and cell phone coverage. Banyan has optioned the properties from Victoria Gold
and Alexco respectively with a right to earn up to a 100% subject to royalties.
The 2020 Initial Mineral Resource Estimate prepared in accordance with National Instrument 43-
101 (“NI 43 -101”) guidelines for the AurMac Property is 903,945 ounces of gold. It is a near
surface, road accessible pit constrained Mineral Resource contained in two near/on -surface
deposits: The Airstrip and Powerline deposits. The Mineral Resource is summarized in Table 1
below.
Table 1: Pit -Constrained Inferred Mineral Resources at a 0.2 g/t Au Cut -Off – AurMac
Property
Deposit Classification
Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Airstrip Inferred 45,997,911 0.524 774,926
Powerline Inferred 6,578,609 0.610 129,019
Total Combined Inferred 52,576,520 0.535 903,945
Notes:
1. The effective date for the Mineral Resource is May 25, 2020.
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2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral
Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, changes
in global gold markets or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources . The quantity and grade of reported inferred
Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these
inferred Mineral Resources as an indicated Mineral Resource and it is uncertain if further exploration will result in upgrading
them to an indicated or measured Mineral Resource category.
4. Mineral Resources are reported at a cut-off grade of 0.2 g/t Au, using a US$/CAN$ exchange rate of 0.75 and constrained
within an open pit shell optimized with the Lerchs-Grossman algorithm to constrain the Mineral Resources with the following
estimated parameters: gold price of US$1,500/ounce, US$1.50/t mining cost, US$2.00/t processing cost, US$2.50/t G+A,
80% heap leach recoveries, and 45° pit slope.
5. Mineral Resource Estimate prepared in accordance with 43-101 guidelines by Marc Jutras, P.Eng., M.A.Sc., Principal, Ginto
Consulting Inc, with technical report filed July 7,2020.
The Hyland Gold Project, located 70 km NE of Watson Lake, Yukon, along the southeast end of
the Tintina Gold Belt is a sediment hosted, structurally controlled, intrusion related gold deposit,
with a large land package (over 125 sq km), with the resource contained in the Main Zone area
(900x600m) daylighting at surface and numerous other known surface gold targets. The Main
Zone oxide zone is amenable to heap leach open pit mining, with column leach recoveries of
86%. The project has an existing gravel access road.
Table 2 shows the Hyland Main Zone Indicated Gold Resource Estimate, prepared in accordance
with NI 43 -101, at a 0.3 g/t gold equivalent cutoff, contains 8.6 million tonnes grading 0.85 g/t
AuEq for 236,000 AuEq ounces with an Inferred Mineral Resource of 10.8 million tonnes grading
0.83 g/t AuEq for 288,000 AuEq ounces. NI 43-101 prepared by Robert Carne, Allan Armitage
and Paul Gray on May 1, 2018.
Table 2: Hyland Main Zone Indicated Gold Resource Estimate
Cut-off
Grade
(AuEq g/t) In situ Tonnes
Au Ag AuEq
Grade
(g/t) Ozs
Grade
(g/t) Ozs
Grade
(g/t) Ozs
Indicated
0.3 8,637,000 0.78 216,000 7.04 1,954,000 0.85 236,000
Inferred
0.3 10,784,000 0.77 266,000 5.32 1,845,000 0.83 288,000
Notes:
1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate.
2. Mineral resources are reported at a cut-off grade of 0.3 g/t AuEq. AuEq grade is based on $1,350.00/oz Au, $17.00/oz Ag and
assumes a 100% recovery. The AuEq calculation does not apply any adjustment factors for difference in metallurgical recoveries
of gold and silver. This information can only be derived from definitive metallurgical testing which has yet to be completed.
Banyan trades on the TSX -Venture Exchange under the symbol “BYN”. For more information,
please visit the corporate website at www.BanyanGold.com or contact the Company.
ON BEHALF OF BANYAN GOLD CORPORATION
(signed) "Tara Christie"
Tara Christie
President & CEO
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For more information, please contact:
Tara Christie David Rutt
Tel: (888) 629-0444 Tel: (888) 629-0444
Email: [email protected] Email: [email protected]
CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein.
FORWARD-LOOKING INFORMATION: This news release contains forward -looking information, which is not
comprised of historical facts. Such information can generally be identified by the use of forwarding-looking wording
such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar
variations. Forward-looking information involves risks, uncertainties and other factors that could cause actual events,
results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-
looking information. Forward looking information in this news release includes, but is not limited to, statements relating
to future outlook and anticipated events such as: potential quantity and/or grade of minerals; potential size and
expansion of a mineralized zone, including the potential to expand Powerline gold mineralization; the discovery of
additional near-surface gold resources; Banyan’s objectives, goals or future plans; statements regarding exploration
expectations; proposed timing and descriptions of exploration or development plans, including drilling programs; and
mineral resource estimates. Factors that could cause actual results to differ materially from such forward-looking
information include, but are not limited to, uncertainties inherent in resource estimates, capital and operating costs
varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral
exploration and development industry, enhanced risks inherent to conducting business in any jurisdiction, and those
risks set out in Banyan’s public documents filed on SEDAR. Although Banyan believes that the assumptions and
factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should
not be placed on such information, which only applies as of the date of this news release, and no assurance can be
given that such events will occur in the disclosed time frames or at all. Banyan disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result of new information, future events or otherwise,
other than as required by law.