Mayo Lake Terminates Plans for Share Consolidation and LIFE Offering
Mayo Lake Terminates Plans for Share
Consolidation and LIFE Offering
Based on recent market and operational developments, the
Board has determined not to proceed with the proposed LIFE
financing on the previously announced terms
Key Factors Considered by the Board
Banyan Gold's Recent Nitra Results: Banyan has reported recent exploration results at
its Nitra property. Mayo considers certain geological and structural features reported at
Nitra relevant to its exploration model for the Anderson Gold Trend and its Reduced
Intrusion-Related Gold System (RIRGS) targets;
Trail-Minto NSR: Mayo retains a 2% net smelter return (NSR) royalty on Banyan's Trail-
Minto property, where Banyan has identified a high-priority exploration target;
Tombstone Gold Belt Activity: Snowline Gold, Sitka Gold and Banyan Gold have reported
continuing exploration and development activity within the Tombstone Gold Belt;
Ottawa, Ontario--(Newsfile Corp. - August 31, 2026) -
Mayo Lake Minerals Inc. (CSE:
MLKM) ("Mayo" or the "Company")
announces that its Board of Directors has terminated the
Company's previously announced Listed Issuer Financing Exemption ("LIFE") offering and the
concurrent one-for-three consolidation of its common shares, which had been scheduled to close on or
about August 28, 2026. The cancelled offering contemplated the issuance, of common share units ("CS
Units") at $0.08 per CS Unit and flow-through units ("FT Units") at $0.105 per FT Unit on a post-
consolidation basis.
After reviewing recent exploration developments in the Tombstone Gold Belt, the Company's mineral
interests, prevailing gold prices and the practical timing of the proposed 2026 exploration program, the
Board concluded that proceeding with the financing and consolidation on the previously announced
terms would not be in the best interests of the Company or its existing shareholders.
Banyan's Nitra Results Provide Regional Geological Context
On July 28th, Banyan reported 1.62 g/t gold over 5.0 metres, including 17.80 g/t over 0.4 metres, from
the first reported drillhole at its Roaring Fork zone, together with dense quartz veining, visible gold and
bismuth sulphosalts. Banyan also reported multiple occurrences of visible gold at its nearby Seattle
Creek zone. On August 25th, Banyan reported a new high-grade gold and silver mineralized system
within the first 95 metres assayed from a longer hole at its Seattle Creek zone. Multiple occurrences of
visible gold, together with associated bismuth, sulphosalts and arsenopyrite, were noted in the core.
Additional visible gold was identified in a second hole at the Roaring Fork zone. The information
disclosed from the Roaring Fork and Seattle Creek zones is not necessarily indicative of the
mineralization on the properties within the Anderson Gold Trend.
At this stage of development, there can be no assurance that Mayo will produce drilling results similar to
those reported by Banyan. Mayo considers several exploration indicators reported by Banyan at Nitra—
including structurally controlled gold-in-soil anomalies, favourable magnetic and geophysical signatures,
quartz veining, pathfinder minerals and a history of placer gold—to be relevant to its exploration model
because similar indicators are present at prospects within Mayo's 48-square-kilometre Anderson Gold
Trend.
The Board believes this regional exploration activity supports the rationale for drilling Mayo's proposed
targets and provides additional context for its consideration of the previously announced financing terms.
The Board concluded that completing a one-for-three consolidation followed by the issuance of CS Units
at $0.08 and FT Units at $0.105 on a post-consolidation basis, as compared to recent trading values of
Mayo., would result in excessive dilution to existing shareholders
Dr. Vern Rampton, P.Eng., President and Chief Executive Officer of Mayo, commented:
"Banyan's
recent results at Nitra provide regional geological context for the exploration methods and
indicators Mayo has used to identify its Anderson Gold Trend targets. Although there can be
no assurance that Mayo will obtain similar drill results, the comparison supports systematic
drill testing of Dawn Gulch, Andy-Owl, Peak and other targets. The Board has therefore
decided not to proceed with the financing and consolidation on the previously announced
terms
."
Mayo Lake's 2% NSR on Banyan Gold's Trail-Minto Property Represents a Significant Asset
In December 2025, Mayo sold its Trail-Minto property to Banyan for $1 million in cash while retaining a
2% net smelter return royalty ("NSR"). Banyan has the right to reduce the royalty from 2% to 1% by
paying Mayo an additional $1 million. The Company cautions investors that gold prices remain volatile
and may also decline.
No independent valuation of the NSR has been completed, and Trail-Minto does not presently contain a
mineral resource. The royalty will generate revenue only if a mineral deposit is discovered, developed
and placed into production. Any future proceeds will depend on exploration success, the delineation and
economic viability of a mineral deposit, future commodity prices, development and production decisions,
and other factors beyond Mayo's control. The Board is therefore considering a variety of alternatives in
which to monetize all or a portion of the NSR. Any transaction would be evaluated in light of the royalty's
long-term value and the best interests of the Company and its shareholders.
Gregory LeBlanc, Chair of Mayo's Audit Committee, stated:
"The Board has an obligation to
consider all of Mayo's assets and the potential dilution to existing shareholders before
approving a financing. Cancelling the financing and consolidation preserves the Company's
flexibility to reassess its capital requirements, financing alternatives and exploration plans as
additional information becomes available."
Tombstone Gold Belt Exploration Activity
Recent exploration and development progress reported by Snowline Gold, Sitka Gold and Banyan Gold
has brought increased investor and industry attention to the Tombstone Gold Belt and its reduced
intrusion-related gold systems.
Mayo's 86-square-kilometre Anderson-Davidson property, including the 48-square-kilometre Anderson
Gold Trend, is located within this regional geological setting. The property contains numerous gold-in-
soil anomalies, a history of placer-gold activity, interpreted structures and multiple proposed drill targets.
The Board considers that regional exploration developments, the timing of Mayo's proposed work
program and changes in prevailing gold prices warrant reconsideration of the timing and terms of any
future financing.
Mandated Strategic Review
The Company is assessing strategic alternatives, including asset optimization and financing structures
intended to reduce dilution. Additional developments will be announced as required.
Qualified Person
The technical and scientific information contained in this news release has been reviewed and approved
by Dr. Vern Rampton, P.Eng., a Qualified Person as defined by National Instrument 43-101—Standards
of Disclosure for Mineral Projects.
About Mayo Lake Minerals Inc.
Mayo is engaged in the exploration and development of three mineral properties covering 145.6 square
kilometres in the Mayo-Keno area of Yukon's Mayo Mining District. All properties lie within the traditional
territory of the First Nation of Na-Cho Nyäk Dun. The Mayo-Keno area lies within the Tombstone Gold
Belt and the Keno Hill Silver District, which host the company's active exploration and development
programs.
Mayo's 86-square-kilometre Anderson-Davidson property contains the 48-square-kilometre
Anderson Gold Trend
, where more than 10,000 metres of linear gold-in-soil anomalies have been
outlined. Mayo interprets these anomalies as prospective surface indicators of subsurface gold
mineralization, including possible intrusion-related veining.
Mayo's 44-square-kilometre Carlin-Roop Silver property exhibits geological and geochemical
evidence prospective for Keno Hill-style high-grade silver mineralization
. Its Carlin West zone
has a footprint and certain geological characteristics that Mayo considers comparable to those of the
historic Elsa Mine. Comparisons to nearby or historical deposits are provided solely for geological
context and do not imply that similar mineralization will be discovered.
At Mayo's 15-square-kilometre Edmonton property, a broad magnetic low may indicate an
alteration halo above a buried intrusion.
Anomalous gold, silver and base-metal geochemistry,
together with positive SGH responses, define a multi-element exploration target.
Additional information is available at
www.mayolakeminerals.com
.
On Behalf of the Board
"Vern Rampton"
President and Chief Executive Officer
For Additional Information
Darrell Munro, B.A., LL.B.; Corp. Administrator;
613-836-2594 Ext 3
Lee Bowles, Director;
011 3462 466 9063 or 416-561 7474
Dr. Vern Rampton, Ph.D., P.Eng., Pres. and C.E.O.
613-836-2594
Ext 2
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the
meaning of applicable securities laws. Forward-looking statements include, but are not limited to,
statements concerning the interpretation and significance of Banyan's exploration results; the geological
potential of the Anderson Gold Trend; the proposed timing, scope and objectives of Mayo's exploration
programs; the availability of drilling contractors, personnel and equipment; the timing, terms and
completion of any future financing; future gold prices; and the Company's ability to obtain required
regulatory and CSE approvals.
Forward-looking statements are based on management's current expectations, estimates, assumptions
and beliefs, including assumptions regarding exploration results, geological interpretations, financing
availability, market conditions, commodity prices, contractor availability, regulatory requirements and the
Company's ability to carry out its proposed work programs. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual results to differ materially from
those expressed or implied.
There is no assurance that Mayo's exploration model will result in the discovery of a mineral deposit, that
its drilling results will be comparable to those reported by other companies, that the Trail-Minto property
will be placed into production, that the NSR will generate revenue, that gold prices will remain at current
levels, or that the Company will complete a financing or exploration program in 2027.
Readers should not place undue reliance on forward-looking statements. The forward-looking
statements in this news release are made as of the date hereof. Except as required by applicable
securities laws, Mayo undertakes no obligation to update or revise them as a result of new information,
future events or otherwise.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/312155