Banks Island Gold suspends all operations at Yellow Giant Mine, says additional financing needed

A financial update from Bansk Island Gold raises questions about whether or not the company will remain financially viable.

As Banks Island Gold awaits word on whether or not it can acquire regulatory approval to resume operations at its mine following a pollution spill, a financial update from the company raises questions about whether or not the company will remain financially viable.

On July 30 trading of the company’s shares was halted at the request of Banks Island Gold and on Aug. 4 the company announced it had suspended all operations at the Yellow Giant Mine effective July 31.

“The company … will put the mine into care and maintenance until permitting and regulatory issues at the project are resolved and the company has sufficient working capital to re-commence operations,” read a statement.

“The Yellow Giant Mine provided direct employment for over 100 people and indirect employment for many more, whose families depend on the mine operating. Further information on suspension of operations will be released when available.”

In that same announcement, Banks Island Gold revealed some financial information and warned that more money will be needed if the mine is to continue regardless of regulatory approval.

“As a result of the subsequent events … resulting production delays, uncertain timelines for successful permit amendments and current working capital deficiency, the company needs to seek immediate financing. Inability to do so at terms acceptable to the company and in a timely manner would cast significant doubt on the company’s ability to continue as a going concern,” reads a statement from Banks Island Gold.

According to stockhouse.com, shares in Banks Island Gold fell from a high of 52 cents on Aug. 18, 2014 to five cents on July 30, 2015.

Just Posted

Broken axle caused New Hazelton train derailment: TSB

It could happen again without a different way to inspect trains

Cullen remains uncertain about political future

Says he’ll make decision in early March

Crews begin Highway 16 upgrades

The province promised updated lighting and signalling late last year

Terrace resident’s bill banning single-use plastics introduced in Ottawa

MP Nathan Cullen’s presented Ben Korving’s private member’s bill Wednesday

Ice skating on the North Coast, a rare treat

Seawolves hockey players bring their gear to Oliver Lake this week to play on the outdoor rink

Galchenyuk scores in OT as Coyotes edge Canucks 3-2

Vancouver manages single point as NHL playoff chase continues

B.C. legislature moving suspended staff controversy to outside review

Whale watching, Seattle Mariners trips billed as emergency preparedness, Speaker Darryl Plecas says

More people signing up for compulsory vaccines

Maple Ridge mom says public tired of hearing about measles

UPDATE: Man charged in stabbing of woman, off-duty cop outside B.C. elementary school

Manoj George, 49, is facing two counts of aggravated assault and two counts of assault with a weapon after the incident on Wednesday, Feb. 20.

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

HBC shuttering Home Outfitters across Canada

North America’s oldest retailer is revamping its various stores to improve profitability

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Most Read