Banks Island Gold Ltd.

Banks Island Gold Ltd.

December 06, 2011 19:07 ET

Banks Island Gold Ltd. Announces $2 Million Flow-Through Common Share Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2011) -


Banks Island Gold Ltd. (the "Company") (TSX VENTURE:BOZ) announces that it has entered into a letter of intent with Salman Partners Inc. (the "Agent") respecting a brokered best efforts private placement to raise approximately $1.5 million through the sale of 2,727,200 flow-through common shares of the Company (the "Flow-Through Shares") at a price of CAD$0.55 per Flow-Through Share (the "Offering").

A cash fee will be payable to the Agent on the sale of the Flow-Through Shares equal to 7% of the gross proceeds raised, and brokers warrants ("Broker Warrants") equal to 7% of the Offering. Each Broker Warrant shall be exercisable for one non-flow through common share of the Company at a price of CAD$0.55 at any time up to 24 months after closing.

The Company will grant the Agent an over-subscription option, exercisable for a period of up to 2 days before the closing of the Offering, to purchase from the Company up to an additional 909,090 Flow-Through Shares at CDN$0.55 per share to cover over-subscriptions.

In addition, the Company will undertake a concurrent non-brokered private placement to sell 909,090 flow-through common shares of the Company at a price of CAD$0.55 per share to raise gross proceeds of up to CAD$500,000 (the "Non-Brokered Offering").

The Company intends to use the net proceeds of the Offering and Non-Brokered Offering to continue exploration and development activities on its Yellow Giant Gold Property located on Banks Island in British Columbia.

Closing of the Offering and Non-Brokered Offering is anticipated to occur on or before December 29, 2011 and is subject to receipt of applicable regulatory approvals including approval of the TSX.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

The Company is a junior mining resource exploration company focused on exploring for and developing economically viable mineral resources. The Company's mineral property is located on Banks Island in British Columbia. For more information, please refer to the Company's website at


Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer

This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.

Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company's project, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company prospectus dated September 30, 2011 filed on SEDAR.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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