Banyan Gold Provides Update on Pre-Existing Underlying Royalty Purchase, AurMac Project, Yukon, Canada

Executive Summary

• Franco‑Nevada Corporation agreed to purchase an existing underlying Net Smelter Return (NSR) royalty on Banyan Gold’s AurMac Project for $52.2 million.
• The NSR covers the McQuesten and Aurex properties (≈13% of the total 720 km² AurMac area, 92.6 km² or 510 claims).
• The transaction validates the project’s quality and provides significant non‑dilutive cash to Banyan; the royalty was originally issued by Banyan at 6% with an option to reduce it to 1% for a $10 million cash payment.

Key Details

• Buyer: Franco‑Nevada Corporation.
• Seller/Receiver: Victoria Gold Corp., represented by PricewaterhouseCoopers Inc. (receiver and manager).
• Asset Sold: Underlying NSR covering McQuesten & Aurex properties on the AurMac Project.
• Purchase Price: $52.2 million (USD).
• Area Covered: 92.6 km² (510 claims), representing ~13% of AurMac’s total project area.
• Original Royalty Structure: 6% NSR issued by Banyan to Victoria with a one‑time cash option to reduce to 1% for $10 million.
• Transaction Status: Subject to approval by the Ontario Superior Court of Justice (as per royalty purchase agreement).
• Relevant Resource Data (for context):
• AurMac Indicated MRE: 2.274 Moz Au (112.5 Mt @ 0.63 g/t).
• AurMac Inferred MRE: 5.453 Moz Au (280.6 Mt @ 0.60 g/t).
• Qualified Person: Duncan Mackay, M.Sc., P.Geo., VP Exploration, reviewed and approved the technical content (excluding the MRE).
• Upcoming Investor Events:
• “Yukon in Global Focus: From Rocks to Riches” Breakfast – Toronto, Mar 2.
• PDAC Exhibition – Toronto, Mar 1‑4 (Booth 2213).
• SMI Zurich – Mar 18‑19.
• Italy Roadshow – Milan, Mar 23.

Notable Quotes

• “The pending transaction by Franco‑Nevada, involving the acquisition of the pre‑existing royalty on the core of the AurMac Property for $52.2 million, serves as further validation of the quality of our project,” – Tara Christie, President & CEO, Banyan Gold Corp.