Banyan Gold (TSXV: BYN) last night announced that it has closed the first tranche of its outstanding private placement. The tranche saw a total of $11.9 million in gross proceeds raised.
The tranche is in connection with a currently outstanding $16.0 million financing being undertaken by the company. Announced two weeks ago, the financing consists of flow through, charity flow through, and common shares being offered.
Under the financing, regular shares of the company are priced at $0.28 per share, while flow through shares are $0.35 each, and charity flow through shares are $0.38 each. The first tranche saw a total of 8.0 million regular shares, 6.3 flow through shares, and 19.6 charity flow through shares sold.
Proceeds from the financing are to be used for the firms mineral exploration and development projects, as well as general corporate purposes. Exploration programs, which are to be primarily conducted at the AurMac property, are said to consist of drilling, metallurgical work, and a PEA study among other items.
The company has indicated that it expects the second tranche of the financing to largely consist of charity flow through shares, with the tranche to raise $4.1 million in gross proceeds and close on August 14.
Banyan Gold last traded at $0.285 on the TSX Venture.
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