North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Banks Island Gold Ltd. Dec. 23 reported the cancellation of an equity financing announced on Dec. 1, due to the lack of sufficient interest to be able to close the C$3 million financing required to support its operations over the coming months.

As a result, the Banks Island has insufficient funds to maintain operations and has received notice of claims from three significant trade creditors for payment of outstanding debt.

The British Columbia Ministry of Energy and Mines has confiscated the reclamation bond posted by Banks Island.

The company terminated all of its remaining employees, effective Dec. 31.

The company's board is currently comprised of Ben Mossman, Jason Nickel, John Anderson and Frederick Sveinson.

Since its formation in 2010, Banks Island has been working towards reaching commercial production at its Yellow Giant gold-silver property on Banks Island, British Columbia.

The company began bulk sampling in 2014 and received permits that year for the construction of a 200-ton-per-day grinding and flotation plant, an underground mine, and associated facilities including rock stockpiles and other infrastructure.

By January 2015, the company declared commercial production.

The company, however, suspended operation in late July "until permitting and regulatory issues at the project are resolved and the company has sufficient working capital to re-commence operations." Banks Island said it is consulting with its legal advisors, and will provide a further update on the company's status in the coming weeks.

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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