Eskay Mining Corp Announces Closing of $3.4 Million Non-Brokered Private Placement and Commencement of Drilling

Rhea-AI Summary

Eskay Mining Corp. has successfully closed a non-brokered private placement, raising $3,409,250 through the sale of 3,500,000 flow-through units and 2,559,444 working capital units. The proceeds will support the company's 2020 exploration program and general working capital. Recent surveys have identified promising anomalies near the TV and Jeff VMS prospects, and drilling plans are set for a minimum of 3,000 meters starting August 19, 2020. The exploration aims to confirm previous drill results and assess new conductivity anomalies.

Positive

• Raised $3,409,250 through private placement to fund exploration and working capital.
• Identification of high-conductivity anomalies suggesting potential mineralization in unexplored areas.
• Planned drilling of a minimum of 3,000 meters targeting promising VMS prospects.

Negative

• None.

TORONTO, ON / ACCESSWIRE / August 21, 2020 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTCQB:ESKYF)(Frankfurt:KN7) (WKN: A0YDPM) is pleased to announce that, further to its Press Release of July 28, 2020, it has closed its non-brokered private placement (the "Offering") with the sale of 3,500,000 flow-through units (the "FT Units") at a price of $0.645 per FT Unit for $2,257,500 and 2,559,444 working capital units ("WC Unit") at a price of $0.45 per WC Unit for $1,151,750. The Company raised an aggregate of $3,409,250 pursuant to the Offering.

Proceeds from the Offering will be used to fund the Company's 2020 exploration program and for general working capital.

Exploration Update and 2020 Drill Plans:

• Eskay's recently completed Skytem survey detected multiple discrete high-conductivity anomalies in the vicinity of the TV and Jeff volcanogenic massive sulfide ("VMS") prospects. Eskay believes these anomalies, many of which have not been previously drill tested, may be generated by buried sulfide mineralization.
• Recent reinterpretation of historic diamond drill core dating to 1995-1996 from TV and Jeff indicates the presence of stacked east-dipping VMS lenses occurring within carbonaceous mudstone and rhyolite breccia. The best historic drill intercept at TV is from drill hole TV95_15 that encountered 1.8 g/t Au over 34.46 m between 40.11-74.57 m including 29.9 g/t Au over 1.00 m from 61.0-62.0 m. At Jeff, the best historic drill intercept is from drill hole J91_7 that encountered 3.7 g/t Au over 43.55 m between 61.05-104.6 m including 22.5 g/t Au over 4.00 m from 63.1-67.1 m.
• Recent field examination of the Spearhead VMS prospect has defined a zone of carbonaceous mudstone and massive sulfide mineralization striking northwest, steeply overturned and outcropping over at least 150 m on the surface. Eskay Mining's team found evidence of two historic drill holes in the area, but both holes appear to have tested the footwall stringer part of the system and drilled away from the overturned massive sulfide horizon.
• Weather dependent, Eskay Mining is planning a minimum of 3,000 m of diamond drilling which began August 19, 2020. Most planned holes will test the TV and Jeff VMS prospects. At least two holes are planned at Spearhead. Drilling at TV and Jeff is designed to get better resolution on known VMS lenses as well as start to understand the source of the newly identified conductivity anomalies discussed above. The two planned holes at Spearhead will drill from the hanging wall side of the mudstone-VMS and test the entirety of the VMS profile.

Non-Brokered Private Placement

Each FT Unit comprises one (1) flow-through common share of the Company and one (1) common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one (1) common share at a price of $0.80 until August 19, 2022.

Each WC Unit comprises one (1) common share of the Company and one (1) common share purchase warrant (a "WC Warrant"). Each WC Warrant entitles the holder to acquire one (1) common share at a price of $0.80 until August 19, 2022.

All securities issued are subject to a statutory hold period expiring on December 20, 2020.

Dr. Quinton Hennigh, P. Geo., a Director of the Company and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.

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," 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.

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https://www.accesswire.com/602702/Eskay-Mining-Corp-Announces-Closing-of-34-Million-Non-Brokered-Private-Placement-and-Commencement-of-Drilling

FAQ

What is the private placement amount raised by Eskay Mining Corp?

Eskay Mining Corp raised $3,409,250 in its non-brokered private placement.

What are the plans for the funds raised in the private placement?

The funds will be used to support the company's 2020 exploration program and general working capital.

When did Eskay Mining Corp commence its drilling plans?

Eskay Mining Corp began its drilling plans on August 19, 2020.

What exploration targets are identified by Eskay Mining Corp?

Eskay Mining Corp has identified targets at the TV and Jeff VMS prospects based on recent surveys.

How many meters of drilling is Eskay Mining planning?

Eskay Mining is planning a minimum of 3,000 meters of diamond drilling.