Banyan Gold (TSXV: BYN) soared to an all-time high on Monday after announcing a capital raise of $46.5 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 $1.918 apiece for $29.7 million, plus 12 million shares at $1.40 each for $16.8 million, under a private placement.
The prices represent a premium to Banyan’s closing price last Friday of $1.37. The stock surged following the announcement on Monday, rising as much as 15% to a new high of $1.57 a share. The Vancouver-based gold explorer has a market capitalization of almost $650 million.
Exploration funding
The financing proceeds will go towards exploration efforts at AurMac, about 360 km north of Whitehorse. Drilling is underway to further define its latest resource from last July and support a preliminary economic assessment.
The site hosts 112.5 million indicated tonnes grading 0.63 gram gold for 2.27 million ounces. It includes 280.6 million inferred tonnes at 0.6 gram gold for 5.45 million contained ounces.
The road-accessible project within the Mayo mining district is an amalgamation of two projects optioned from Victoria Gold and Hecla Mining (NYSE: HL), respectively, as well as additional claims Banyan staked.
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