Banyan Announces Closing of Private Placement for Aggregate Proceeds of $14.5 Million

Rhea-AI Summary

Banyan Gold Corp (BYAGF) has successfully closed a non-brokered private placement, raising total proceeds of $14.5 million. The offering consisted of three components: 32 million Premium FT Shares at $0.336 per share ($10.75M), 7.84 million FT Shares at $0.285 per share ($2.23M), and 6.3 million HD Shares at $0.24 per share ($1.51M).

The funds will be used to advance the AurMac Project in 2025 and 2026, including an expanded drill program, metallurgy, engineering, baseline studies, and community engagement. The flow-through shares proceeds will be used for Canadian exploration expenses in Yukon projects by December 31, 2026. Company insiders participated in the offering, acquiring 338,174 common shares.

All shares issued are subject to a hold period under Canadian securities laws expiring July 15, 2025. No finder's fees or commissions were issued for the offering.

Positive

• Successful raise of $14.5M strengthens company's cash position
• No finder's fees or commissions, maximizing use of proceeds
• Insider participation demonstrates management confidence
• Funding secured for expanded 2025-2026 exploration program

Negative

• Share dilution from issuance of 46.1 million new shares
• Premium FT shares issued at 40% premium to HD shares price ($0.336 vs $0.24)

Not for distribution to United States newswire services or for dissemination in the United States

VANCOUVER, BC / ACCESS Newswire / March 14, 2025 / Banyan Gold Corp. (TSX-V:BYN)(OTCQB:BYAGF) (the "Company") is pleased to announce that it has closed a non-brokered private placement whereby the Company has issued (i) 32,000,000 common shares (the "Premium FT Shares"), which qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act"), at a price of $0.336 per Premium FT Share, for gross proceeds of $10,752,000; (ii) 7,838,000common shares (the "FT Shares"), which qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Tax Act), at a price of $0.285 per FT Share, for gross proceeds of $2,233,830 and (iii) 6,298,000 common shares (the "HD Shares") at a price of $0.24 per HD Share for gross proceeds of $1,511,520, for aggregate gross proceeds to the Company of $14,497,350 (the "Offering").

There was no finders fee or commissions issued for the Offering.

"This strategic financing positions Banyan to advance the AurMac Project in 2025 and 2026 including an upsized drill program in 2025, metallurgy, engineering, baseline studies and community engagement," said, Tara Christie, President and Chief Executive Officer of the Company. "It provides us the resources to expand the scope of our upcoming exploration program and capitalize on high-grade results and strategic targets. We are excited to continue to demonstrate value at AurMac and we are grateful for the continued support of our shareholders."

The Premium FT Shares, FT Shares and HD Shares were issued pursuant to applicable private placement exemptions and are subject to a hold period under Canadian securities laws expiring July 15, 2025.

The Company will use the gross proceeds raised pursuant to the issuance of Premium FT Shares and FT Shares to incur (or be deemed to incur) eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" (as both terms are defined in the Tax Act)related to the Company's projects in the Yukon (the "Qualifying Expenditures"), on or before December 31, 2026, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Premium FT Shares and FT Shares effective December 31, 2025. The net proceeds raised pursuant to the issuance of the HD Shares will be used for general and administrative expenses.

Insiders of the Company acquired an aggregate of 338,174 common shares in connection with the Offering. The Company is exempt from the valuation and minority shareholder approval requirements applicable to "related party transactions" as defined in Multilateral Instrument 61-101 - Protection of Minority Holders in Special Transactions ("MI 61-101") on the basis of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the participation in the Offering by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before the expected closing of the Offering, as the details of the Offering were not previously known by the Company. The Company understands that the initial purchasers of Premium FT Shares may donate such securities to registered charities and/or such initial purchasers or registered charities may sell such securities onwards to end purchasers pursuant to transactions involving such purchasers, charities and/or end buyers.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available. "United States" and "U.S. person" have the meaning ascribed to them in Regulation S under the 1933 Act.

For further information, please contact:

Tara Christie • 778 928 0556 •tchristie@banyangold.com
Jasmine Sangria • 604 312 5610 • jsangria@banyangold.com

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) nor OTCQB Venture Market accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

This news release includes certain forward-looking statements concerning the use of proceeds of the Offering, the tax treatment of the Premium FT Shares and the FT Shares, the timing of the Qualifying Expenditures, the future performance of the Company's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the future tax treatment of the Premium FT Shares and the FT Shares, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at under the Company's profile on SEDAR+ at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. The Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.

SOURCE: Banyan Gold Corp.

View the original press release on ACCESS Newswire

FAQ

How much did Banyan Gold (BYAGF) raise in their March 2024 private placement?

Banyan Gold raised aggregate proceeds of $14.5 million through three types of shares: Premium FT Shares ($10.75M), FT Shares ($2.23M), and HD Shares ($1.51M).

What is the hold period for Banyan Gold's (BYAGF) newly issued shares?

The shares are subject to a hold period under Canadian securities laws expiring July 15, 2025.

How will Banyan Gold (BYAGF) use the proceeds from the private placement?

The proceeds will fund the AurMac Project advancement, including drill programs, metallurgy, engineering, baseline studies, and community engagement in 2025-2026.

When must Banyan Gold (BYAGF) spend the flow-through shares proceeds?

The flow-through shares proceeds must be spent on Canadian exploration expenses by December 31, 2026, with renouncement effective December 31, 2025.