TORONTO, ON / ACCESSWIRE / November 26, 2020 / Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK)(OTCQB:ESKYF)(Frankfurt:KN7) (WKN:A0YDPM) is pleased to announce that it amended its agreement with Echelon Wealth Partners Inc. and Eight Capital as co-lead agents (the “Agents”) to increase the size of its previously announced “best efforts” private placement offering to up to approximately $11,500,000 of units (the “Units”), traditional flow-through shares (the “FT Shares”), and flow-through units (the “FT Units”, and with the Units and FT Shares collectively, the “Offered Securities”) of the Company (the “Offering”) at a price of $0.90 per Unit (the “Unit Issue Price”), $1.05 per FT Share, and $1.25 per FT Unit.
Each Unit and Each FT Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant a “Warrant”), with each Warrant entitling the holder thereof to acquire one common share of the Company (a “Warrant Share”) at a price $1.30 for a period of two years following the closing of the Offering.
The Company has also granted the Agents an option to purchase up to an additional 20% of Offered Securities, in such proportion of Units, FT Shares, and FT Units as the Agents may determine, exercisable at any time until 48 hours prior to Closing.
It is anticipated that the net proceeds from the Offering will be used to fund the Company’s exploration activities, and for general corporate purposes. The gross proceeds received by the Company from the sale of the FT Shares and FT Units will be used to incur Canadian Exploration Expenses (“CEE”) that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s properties in British Columbia, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of FT Shares and FT Units.
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