Eskay Agrees to Acquire 19.5% of Garibaldi Resources Corp from The Sprott Foundation[TSXV:ESK][TSXV:GGI]

Eskay Agrees $ESK to Acquire 19.5% of Garibaldi Resources Corp $GGI from The Sprott Foundation

1) Eric Sprott purchases Eskay Mining via share swap with Garibaldi Resources.
My take: Eric wants a piece of Eskay Mining.

2) $ESK pays $10.8m for 23.7m shares of GGI for $2.56 units + 1 warrant $2.82.
My take: Minimal dilution for ESK, overall a great deal.

3) Eric Sprott buys 4.221m common shares and 4.221m wrrants = 8.442m total share ownership or 4.3% ownership of ESK

4) Eskay Mining now owns 19.5% of Garibaldi Resources setting up to become an even larger owner in the Golden Triangle
My take: This is a strategic position to put Eskay in an even more commanding land ownership in the Golden Triangle.

5) This is the next financing is practically closed now; a potential $11.8m will fill the coffers with success this upcoming season. ($2.82 * 4.211)

6) Eric Sprott now owns more or less no position in GGI and would theoretically be able to purchase more, if he wishes.

Eskay Mining - Blue Blue Skies [TSXV:ESK][OTC:ESKYF]

Eskay Mining put out the following news release on February 2nd, 2021 and I have compressed it to highlight certain portions of it. Full release can be viewed at https://eskaymining.com/news/news-releases/eskay-mining-drills-35-5-m-grading-9-50-gpt-au-and-2134/

Eskay Mining Corp.is pleased to announce that it has received all assays from 20 drill holes completed during its maiden diamond drill program at two precious metal-rich volcanogenic massive sulphide (“VMS”) deposits, Jeff and TV, on joint venture ground held with Kirkland Lake Gold Ltd. (80% Eskay/20% Kirkland Lake Gold). Assays include 35.5 m grading 9.50 gpt Au and 70.0 gpt Ag including 9.25 m grading 32.17 gpt Au and 93.2 gpt Ag in hole J20-33 at Jeff.