Eskay Acquires 100% Interest in SIB Property

Rhea-AI Summary

Eskay Mining Corp. has acquired a 100% interest in the SIB property, previously under a joint venture with St. Andrew Goldfields Ltd. The joint venture has been terminated, converting St. Andrew into a holder of a 2% net smelter returns royalty (NSR). Eskay can purchase half of this royalty for $3 million and has the right of first refusal for the remaining 1%. This acquisition enhances Eskay's holdings in the prolific Golden Triangle region, vital for its exploration and development efforts.

Positive

• Acquisition of 100% interest in SIB property strengthens Eskay's asset portfolio.
• Termination of the joint venture simplifies ownership structure and eliminates shared profits.
• Possibility to purchase a portion of the 2% NSR offers strategic financial leverage.

Negative

• None.

TORONTO, ON / ACCESSWIRE / March 25, 2021 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTCQB:ESKYF)(FSE:KN7)(WKN:A0YDPM) is pleased to announce that it has acquired a 100% interest in the SIB property which was subject to a joint venture (80% Eskay/20% St Andrew) with St. Andrew Goldfields Ltd. ("St Andrew"), a wholly-owned subsidiary of Kirkland Lake Gold Ltd., pursuant to a Joint Venture Agreement dated November 25, 2016, as amended, (the "JV Agreement"). Pursuant to the terms of the JV Agreement, the joint venture has been terminated and St Andrew has been converted to the holder of a 2% net smelter returns royalty (the "2% NSR"). Eskay has the right, exerciseable at any time, to purchase one half of the 2% NSR held by St Andrew for $3 million and has the right of first refusal to purchase the remaining 1% net smelter returns royalty.

About Eskay Mining Corp:
Eskay Mining Corp (TSXV: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," approximately 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).

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

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.

View source version on accesswire.com:
https://www.accesswire.com/637332/Eskay-Acquires-100-Interest-in-SIB-Property

FAQ

What did Eskay Mining Corp. announce on March 25, 2021?

Eskay Mining Corp. announced the acquisition of a 100% interest in the SIB property, previously part of a joint venture.

What is the significance of the 2% net smelter returns royalty in Eskay's acquisition?

The 2% NSR allows St. Andrew to receive a royalty from the SIB property, but Eskay has the option to buy half of it for $3 million.

How does the SIB property acquisition affect Eskay Mining Corp.'s future?

The acquisition enhances Eskay's exploration capabilities in the Golden Triangle region, potentially increasing future revenue.

What was the previous ownership structure of the SIB property?

The SIB property was previously under a joint venture with St. Andrew Goldfields Ltd., with Eskay holding 80%.