Apr 9 2015
Banks Island Gold Ltd. (the "Company" or "Banks Island") and SilverStream SEZC ("SilverStream"), effective April 2, 2015, have executed the binding Metals Purchase Agreement for the advancement of the Yellow Giant Gold Project ("Yellow Giant").
The Company has received the balance of US$1,500,000 from SilverStream for the purchase of a silver stream from the Yellow Giant Project. Under the terms of the agreement SilverStream will purchase 100% of the silver ounces produced from the project for a purchase price of US$4.00 per oz. SilverStream will be remitted a minimum of 6,667 ounces of silver each month under the agreement and will retain the option to purchase 50% of the silver production greater than the minimum amount. The minimum amount of monthly delivery will remain in place until 140,000 ounces of silver or payments in kind have been settled under the metals purchase agreement. Silver delivery can be made in silver, gold equivalent, or cash payments.
"This is an important milestone for Banks Island as we accelerate production and further delineate and extend our current resource. The SilverStream transaction is a non-dilutive form of financing which will allow us to increase shareholder value," stated Ben Mossman, CEO and Director.
Kyle Floyd, Chief Executive Officer of SilverStream SEZC, further commented "The Yellow Giant Gold Project is a tremendous asset with a very promising future. The working capital we have provided will allow the Company to achieve further production growth, optimization, and resource extension activities. As a primary gold producer, the silver stream is a very small component of the overall revenue composition of the Company, thereby maintaining the Company's full leverage to gold. We are pleased to be partnered with Banks Island as the Company continues to build on its success."
Benjamin Mossman, P.Eng. is the qualified person who reviewed and approved the contents of this news release.
The Company is a mining company focused on gold production, exploration, and development of economically viable mineral resources. The Company's mineral property is located in British Columbia. For more information, please refer to the Company's website at www.banksislandgold.com
ON BEHALF OF THE BOARD OF DIRECTORS
Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer
Source: http://www.banksislandgold.com/