Banyan Announces Closing $4.74 M Financing
BANYAN ANNOUNCES CLOSING $4.74 M FINANCING
July 31, 2020 TSX-V: BYN
VANCOUVER, July 31, 2020, Banyan Gold Corp. (the "Company" or "Banyan") (TSX-V: BYN)
is pleased to announce, subject to approval by TSX -V, that it is clo sing the private placement
announced July 8, 2020 (the “Private Placement”), and increased on July 29th for total proceeds
of $4,740,000.
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 financing includes a combination of 14,000,000 Charity Flow Through Shares at $0.28,
2,000,000 Flow Through Shares at $0.25 and 1,600,000 Common Shares at $0.20 (together the
“Offering”).
““With the closing of the financing, Banyan has $6.1 million in working capital, placing us in a
strong position to materially advance AurMac ,” commented Tara Christie, President and CEO .
“We are very pleased to welcome new institutional shareholders and grateful for the continued
support of existing major s hareholders that participated in the financing. Banyan is committed
building ounces at AurMac and positioning the project to move forward.”
At the close of the Private Placement, the m ajor shareholders will be Alexco Resource
Corporation ( 9.3%), Victoria Gold Corporation ( 7.9%), Sprott (3%) and Osisko Gold Royalties
(4.9%).
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, 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
$33,930 on the financing.
Certain insiders of the Company participated in the Private Placement for $ 125,000, comprised
of 468,000 Flow Through Shares and 40,000 Common Shares, respectively. 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 pursuant to the Private
Placement are subject to, among other things, a statutory hold period of four months and one
day. The Private Placement remains subject to the final approval of the TSX Venture Exchange
(the “TSX-V”).
Upcoming Events:
Upcoming events are listed on the company website and include:
Webinars
August 5th - Hosted by StreetCents Media, moderated by Robert Sinn
August 20th - Hosted by Invest Yukon
September 22nd 2020 - hosted by Adelaide Capital
Mines and Money- Virtual Conference – August 31- September 1, 2020
Precious Metals Summit Beaver Creek, Virtual Conference - September 15-17, 2020
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 will 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 announced 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 Vict oria
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 92 sq. km AurMac Property lies 30km from Victoria Gold's Eagle Project 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 Yu kon 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 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 to Table 1:
1. The effective date for the Mineral Resource is May 25, 2020.
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, ti tle, 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 slope1
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 70km NE of Watson Lake, Yukon, along the s outheast 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 numero us 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.
The Hyland Main Zone Indicated Gold Resource Estimate, prepared i n 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.
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
(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 go ld 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
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. This news release contains forward-looking information, which is not comprised of historical facts.
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, Banyan’s objectives, goals
or future plans, statements regarding exploration expectations, exploration or development plans 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.
Statements in this news release regarding Banyan which are not historical facts are “forward -looking statements” that
involve risks and uncertainties. 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.