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.