"The 2022-23 exploration programmes at the AurMac property are intended to include in excess of 60,000 metres of diamond drilling, geotechnical drilling, metallurgical test work, and environmental baseline data collection towards a resource update and commencement of a PEA study for 2023," the company said.

The non-brokered private placement follows Banyan last month updating the mineral resource estimate for AurMac property to show an inferred resource of 3.99 million ounces.

The pit constrained resource at the project in the Mayo mining district in Yukon, based on 40,000 metres of drilling, is contained in three surface or near surface deposits called Airstrip, Powerline, and Aurex Hill. Together, they total 207 million tonnes grading 0.6 grams per tonne at a 0.2-0.3g/t cut-off grade.

Banyan CEO Tara Christie told Mining Journal last month that the PEA may feature a similar scale as the Eagle gold mine developed by Victoria Gold, some 50km away.

"Eagle is the best reference we have, so it could outline an operation to produce 200,000 or 250,000oz," she said.

The private placement is to consist of 16.21 million charity flow through shares priced at C$0.63 per share for gross proceeds of C$10.21 million, 4.97 million flow through shares priced at C$0.55 per share for gross proceeds of C$2.74; and 7.89 million shares priced at C$0.45 for gross proceeds of C$3.55 million.

Banyan's share price was down 7% day on day at C$0.51 on June 8, giving the company a market capitalization of C$116.35 million.