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Banks Island Gold Ltd. Announces $4.0 Million Non-Brokered Financing

June 16, 2014



ENP Newswire - 16 June 2014

Release date- 13062014 - Vancouver, British Columbia - Banks Island Gold Ltd. (TSX V: BOZ) announces a non-brokered private placement offering to sell up to 4,000,000 flow-through share units at a price of $0.50 per Flow-Through Unit and 4,444,444 common share units at a price of $0.45 per Common Share Unit to raise gross proceeds of $4,000,000.

Each Flow-Through Unit consists of one flow-through common share ('a Flow-Through Share') and one-half of one non-transferrable share purchase warrant ('a Warrant'). Each whole warrant entitles the holder thereof to acquire one non flow-through common share ('a Common Share') in the capital of the Company at a price of $0.60 per Common Share for a period of twenty-four (24) months following the closing of the financing. Warrants will NOT be listed for trading.

The gross proceeds from the issue of the flow through shares (as defined in the Income Tax Act (Canada)) (the 'Tax Act') included in the Flow-Through Units will be used on qualifying 'flow-through mining expenditure' (as defined in the Tax Act) related to the Company's exploration projects. The Company intends to renounce Canadian Exploration Expenses (as defined in the Tax Act) with an effective date of no later than December 31, 2014.

Each Common Share Unit consists of one Common Share and one non-transferable share purchase warrant. Each whole warrant entitles the holder thereof to acquire one Common Share at a price of $0.60 per Common Share for a period of twenty-four (24) months following the closing of the Offering. Warrants will NOT be listed for trading. The proceeds from the issue of the Common Share Units will be used for working capital purposes.

The Company will pay to certain finders, including Secutor Capital Management Corp., a fee equal to 8% of the gross proceeds received by the Company from the sale of certain of the FT Units and NFT Units and will issue finder warrants ('Finder Warrants') entitling certain finders to purchase that number of shares of the Company equal to 8% of the total number of NFT Units and FT Units sold pursuant to the Offering.

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

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

Contact:

Benjamin W. Mossman

Tel: 604-245-0066

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.


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Source: ENP Newswire


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