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Banyan Gold to raise $8.5 million for Yukon projects

The AurMac property is transected by the main Yukon highway and access road to the Victoria Gold open-pit, heap leach Eagle Gold mine. Credit: Banyan Gold Corp.

Banyan Gold (TSXV: BYN) is looking to raise approximately C$11.5 million ($8.5m) in gross proceeds for advancing its flagship AurMac property and other gold projects throughout Canada’s Yukon territory.

The private placement will comprise roughly 11.8 million premium flow-through shares priced at C$0.568 per share and 12 million common shares at C$0.40 per share.

As of 11:45 a.m. ET Wednesday, Banyan’s stock was trading at C$0.42 on the TSX Venture Exchange, down 2.4% from the previous session, with a market capitalization of C$106.3 million ($77.9m).

This financing follows up on a C$17 million private placement announced earlier in June that fully funded Banyan’s growth and development plans for the AurMac gold project heading into 2023. The company now has a 60,000-metre drilling campaign underway, with results continuing to expand the gold-mineralized footprint.

The AurMac project represents an amalgamation of the Aurex and McQuesten properties, as well as claims staked and owned 100% by Banyan, covering 173 square kilometres of Yukon’s Mayo mining district.

The combined property lies approximately 25 km away from Victoria Gold’s Eagle gold mine and adjacent to the Keno Hill silver district operated by Hecla Mining. The Aurex and McQuesten claim blocks were previously held by Victoria and Hecla, respectively.

AurMac currently hosts a total inferred gold resource of 3,990,000 ounces (contained in 207 million tonnes grading 0.60 g/t gold). This resource, updated in May 2022, is based on 40,000 metres of drilling on the three near/on-surface deposits (Airstrip, Powerline and Aurex Hill deposits) within the property.

In addition to AurMac, Banyan also holds the Hyland gold project in the Watson Lake mining district of southeast Yukon. The project has an NI 43-101 indicated mineral resource of 236,000 gold-equivalent (AuEq) ounces (8.6 million tonnes grading 0.85 g/t AuEq) plus an inferred mineral resource of 288,000 AuEq ounces (10.8 million tonnes grading 0.83 g/t AuEq).