VANCOUVER, BC / ACCESSWIRE / September 11, 2019 / Mr. Hugh M. Balkam (the “Acquiror”), President, Chief Executive Officer and a director of Eskay Mining Corp. (“Eskay”), wishes to advise that his ownership interest in Eskay has increased by more than 2%. The Acquirer filed an early warning report with respect to the securities of Eskay on March 4, 2016. On September 4, 2019, the Acquiror entered into an agreement to acquire ownership of 1,263,157 Common Shares of Eskay through a company controlled by the Acquiror, Balkam Partners Ltd., to settle a debt owed to Balkam Partners Ltd. of $90,000.00 (the “Debt Settlement”). The Acquiror was also granted 600,000 options to acquire Common Shares at $0.095 for five years (the “Stock Option Grant”).
The Acquiror, in concert with Balkam Partners Ltd., which is controlled by the Acquiror, and the spouse of the Acquiror, now owns or exercises control or direction over 13,401,059 Common Shares of Eskay and has a contractual right, subject to TSX Venture Exchange approval, to acquire a further 1,263,157 Common Shares for a total of 14,664,216 Common Shares. As a result, the interest of the Acquiror and his joint actors will be increased from 9.568% (as reflected in the last early warning report filed on March 4, 2016) to 12.79% of the issued and outstanding Common Shares of Eskay after giving effect to the Debt Settlement, an increase of 3.22% from the last report filed. The Acquiror also holds options to acquire 3,728,572 Common Shares of Eskay. If the Acquiror were to exercise all of his options, the Acquiror would have control over 18,392,788 Common Shares of Eskay, representing 15.54% of the issued and outstanding Common Shares of Eskay, on a partially diluted basis, an increase of 2.46% from the last report filed.
The Acquiror has advised that he will acquire the Common Shares for investment purposes and intends to evaluate his investment and to increase or decrease his holdings in Eskay as circumstances warrant. The Acquiror advised that he has no present intention to either increase or decrease his holdings in Eskay. Notwithstanding the foregoing, the Acquiror has advised that, depending on market conditions and other factors, he may increase or decrease his beneficial ownership, control or direction over Common Shares of Eskay through market transactions, private agreements, exercise of options, other treasury issuances or otherwise.
This news release is issued pursuant to National Instrument 62-103 - The Early Warning System and related Take-Over Bid and Insider Reporting Issues of the Canadian Securities Administrators, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning report in respect of the foregoing matters will be available on Eskay’s issuer profile on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
T: 416 907 4020
E: [email protected]
SOURCE: Eskay Mining Corp.