Friday, February 5, 2021

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.

7) Quinton always said ESK owns 85% of the VMS belt. Did this deal just lock up more of the VMS of the Eskay Creek area?

TORONTO, ON / ACCESSWIRE / February 5, 2021 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTCQB:ESKYF)(Frankfurt:KN7) (WKN: A0YDPM) wishes to announce that it has entered into an agreement with The Sprott Foundation to acquire 23,703,688 common shares of Garibaldi Resources Corp. ("GGI") valued at $10,782,000 (the "Acquisition") in consideration for the issuance of 4,211,719 working capital units (the "WC Units") of Eskay at price of $2.56 per WC Unit. Each WC Unit consists of one (1) common share (a "Common Share") of the Company and one (1) common share purchase warrant (a "WC Warrant"). Each WC Warrant entitles the holder thereof to purchase one (1) Common Share of the Company (a "WC Warrant Share") at a price of $2.82 per WC Warrant Share until the earlier of: (i) the date which is two (2) years following the closing of the Acquisition; and (ii) in the event that the closing price of the Common Shares on the TSX Venture Exchange is at least $3.72 for twenty (20) consecutive trading days, and the 20th trading day (the "Final Trading Day") is on or after August 1, 2021, the date which is thirty (30) days from the Final Trading Day. The Acquisition represents 19.5% of the current issued and outstanding shares of GGI. The Acquisition is being made for investment purposes. The Acquisition is subject to TSX Venture Exchange approval and is anticipated to close immediately following receipt of regulatory approval.

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