TORONTO, ON / ACCESSWIRE / June 4, 2020 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTC PINK:ESKYF)(Frankfurt:KN7)(WKN:A0YDPM) wishes to announce that, further to its Press Release of May 25, 2020, it has closed the first tranche of its non-brokered private placement with the sale of 1,000,000 flow-through units (the "FT Units") at a price of $0.255 per FT Unit for $255,000 and 550,000 working capital units ("WC Unit") at a price of $0.17 per WC Unit for $93,500. A finder was paid a cash fee of $1275.
The Company also wishes to announce that it plans to increase its flow-through offering by a further 2,050,000 FT Units to up to 8,950,000 FT Units of the Company at a price of $0.255 per FT Unit for up to $2,282,250 to fund its 2020 exploration. The Company will be closing the remaining 7,950,000 FT Units for $2,027,250 along with a further 2,452,941 WC Units for $417,000 (as referred to in the May 25, 2020 Press Release) within the next 2 weeks.
Proceeds from this financing will allow Eskay Mining to undertake an aggressive field program over its approximately 500 sq km of prime tenure within the Golden Triangle, British Columbia. Since October, 2019, Eskay, in collaboration with the Colorado School of Mines, has been systematically collating and reinterpreting historic exploration data from the property. At this point, the Company believes many areas remain far under-explored including its 100% owned Corey tenements where limited work has been conducted in recent time.
Eskay is planning an multifaceted geophysical program including airborne electromagnetic surveys to look for chargeable features such as potentially mineralized sulfide-bearing rocks, audio magnetotelluric surveys to help elucidate stratigraphy to better the determine position of favorable host units, and induced polarization surveys to look for near-surface sulfide-bearing rocks for refined drill targeting. In addition, the Company will also conduct a property wide specialized stream sediment program, "BLEG," in which clay fraction sediment is collected from active waterways and analyzed for gold and associated pathfinder elements. Commencement of this program is expected within the month of June.
As data returns from these various exploration programs, Eskay will rapidly evaluate results with an eye toward identifying potential high-priority drill targets. Should opportunity arise, Eskay could potentially mobilize a drill to site in the latter half of the season and test such targets. Although the 2020 program is ambitious, the Company plans to abide by all COVID-19 related guidelines and regulations.
"We are very pleased to attract funding and launch our 2020 exploration program," comment Dr. Quinton Hennigh, technical advisor to Eskay Mining. "Disruption in the market due to COVID-19 caused a temporary delay in our ambitions, but we are now set to undertake a robust field season in which we will collect high quality geophysical data and BLEG samples with a focus on developing new, high-priority drill targets. If our program progresses smoothly, we hope to drill test such targets during the latter half the 2020 program. We are set for a very big year."
Each FT Unit comprises one (1) common share of the Company and one-half (½) of one (1) common share purchase warrant. Each full warrant (a "Warrant") entitles the holder to acquire one (1) common share at a price of $0.30 until June 3, 2022.
Each WC Unit comprises one (1) common share of the Company and one-half (½) of one (1) common share purchase warrant. Each full warrant (a "WC Warrant") entitles the holder to acquire one (1) common share at a price of $0.30 until June 3, 2022.
All securities issued are subject to a statutory hold period expiring on October 4, 2020.
Dr. Quinton Hennigh, P. Geo., the Company's technical adviser, and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this press release.
About Eskay Mining Corp:
Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwestern British Columbia known as the "Golden Triangle", approximately 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).
For further information, please contact:
T: 416 907 4020
Neither the 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.
Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
SOURCE: Eskay Mining Corp.