Banyan Gold hits new high on $34M capital raise

Banyan Gold (TSXV: BYN) soared to an all-time high on Monday after announcing a capital raise of C$46.5 million ($34 million) for its flagship AurMac property in Canada’s Yukon Territory.

In a statement, the company said it will offer up to 15.5 million flow-through shares prices at C$1.918 apiece for $29.7 million, plus 12 million shares at C$1.40 each for $16.8 million, under a private placement.

The prices represent a premium to Banyan’s closing price last Friday. The stock surged following the announcement on Monday, rising as much as 12% to a new high of C$1.56 a share. The Vancouver-based gold explorer has a market capitalization of C$637.3 million ($467.1 million).

Exploration funding

The financing proceeds, said Banyan, will go towards its exploration efforts at the AurMac project.

Located within the Mayo mining district, the property represents an amalgamation of two projects optioned from Victoria Gold and Hecla Mining Company, respectively, as well as additional claims staked by Banyan.

To date, the company has delineated a resource estimate from two zones (Airstrip and Powerline) totalling 2.27 million oz. of gold indicated (112.5 million tonnes at 0.63 g/t) and 5.45 million oz. gold inferred (280.6 million tonnes at 0.60 g/t ).

Drilling is currently underway to further define this resource and support an upcoming preliminary economic assessment.