Toronto, April 25, 2022 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTCQX: ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce that, further to its Press Release of April 7, 2022, the Company has closed the final tranche of its non-brokered private placement of up to $7 million (the “Offering”) with the placement of 1,555,557 flow-through units (the “Charity FT Units”) at a price of $3.15 per Charity FT Unit for proceeds of $4,900,004.55. The Company raised an aggregate of $7,000,002.45 pursuant to the Offering.
Each Charity FT Unit consists of one common share of the Company issued as a “flow-through share” (each, a “FT Share”) within the meaning of the Income Tax Act (Canada) (the “Tax Act”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share (a “Warrant Share”) at a price of $3.40 until April 22, 2024. The securities issued are subject to a hold period expiring on August 23, 2022.
Proceeds from the sale of the Charity FT Units will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Tax Act (“Qualifying Expenditures”), and qualifies as a “BC flow-through mining expenditure” as defined in section 4.721(1) of the Income Tax Act (British Columbia) (the “BC Tax Act”) with respect to subscribers who are qualifying individuals under the BC Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the gross proceeds raised from the issue of the FT Shares.
Proceeds from the Offering will be expended on the Company’s 100% controlled Consolidated Eskay precious metal rich volcanogenic massive sulfide (VMS) project in the Golden Triangle area of British Columbia.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Charity FT Units, nor shall there be any sale of the Charity FT Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Charity FT Units being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
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 northwest British Columbia known as the “Golden Triangle,” 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares).
All material information on the Company may be found on its website at www.eskaymining.com and on SEDAR at www.sedar.com.
For further information, please contact:
Mac Balkam
President & Chief Executive Officer
T: 416 907 4020
E: Mac@eskaymining.com
