Mayo Lake Minerals Sells Property in The Yukon to Banyan Gold for $1,000,000
Executive Summary
- Mayo Lake Minerals sold its non‑core Trail‑Minto property for $1 million, retaining a 2% NSR (with Banyan having an option to repurchase half of the NSR for $1 million).
- The company closed the first tranche of a $300,000 unbrokered private placement (CS Units @ $0.05 and FT Units @ $0.05), issuing 2,000,000 CS Units and 1,100,000 FT Units.
- Proceeds will be used to repay debt, fund general working capital, and finance an aggressive 2026 exploration program on three remaining Mayo‑Keno properties (Anderson‑Davidson, Carlin‑Roop, Edmonton).
Key Details
- Asset Sale:
- Buyer: Banyan Gold Ltd.
- Consideration: $1,000,000 cash paid at closing.
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Retained NSR: Mayo Lake keeps a 2% Net Smelter Return; Banyan may repurchase 0.5 % (half of the NSR) for an additional $1,000,000, leaving Mayo with a 1% NSR.
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Use of Sale Proceeds:
- Repayment of existing debt.
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General working capital.
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Private Placement – First Tranche:
- Total amount: up to $300,000 (first tranche closed).
- Pricing: CS Units and FT Units at $0.05 each.
- Issued securities: 2,000,000 CS Units ($100,000) and 1,100,000 FT Units ($55,000).
- CS Unit composition: 1 common share + ½ warrant; warrants exercisable at $0.07 for 36 months.
- FT Unit composition: 1 flow‑through share + ½ warrant; warrants exercisable at $0.08 for 36 months.
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Funds allocation: CS Unit proceeds → working capital & operating costs; FT Unit proceeds → eligible exploration expenditures (CEE).
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Statutory Hold Period: Securities subject to a 4‑month + 1‑day hold period in Canada.
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2026 Exploration Program (Cash‑Funded):
- Anderson‑Davidson (A‑D) Project: 8 prospects identified, 4 drill‑ready; focus on gold placer creeks and intrusive‑related vein systems.
- Carlin‑Roop Property: High‑grade silver zones (Carlin West & AJ); grab samples up to 3,994 ppm Ag; soil anomalies >30 g/t Ag over a 1,450 m² core area.
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Edmonton Property: Large magnetic low (~6 km²) interpreted as intrusive with associated alteration; soil‑gas surveys confirm gold and base‑metal mineralization.
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Qualified Person: Dr. Vern Rampton, P.Eng., reviewed and approved all technical information per NI 43‑101.
Notable Quotes
“Mayo is happy to report that the cash from the sale of Trail‑Minto has relieved our financial circumstances to the point where we are now able to proceed with financing for an aggressive exploration program in 2026 on our three highly prospective properties…” – Dr. Vern Rampton, CEO & Chairman.