Eskay Mining Corp Announces Non-Brokered Private Placement and 2018 Exploration Plans: Targeting Nickel and Gold Along Border with Garibaldi Resources
Toronto, Ontario (FSCwire) – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) wishes to announce that it is commencing a private placement offering of up to 2,000,000 flow-through units (the “FT Units”) of the Company at a price of $0.30 per FT Unit for up to $600,000 and up to 2,000,000 working capital units (“WC Unit”) at a price of $0.25 per WC Unit for up to $500,000 (the “Offering”) to fund its 2018 exploration.
Eskay is also pleased to announce the 2018 exploration plans for its Corey property, in NW BC’s famed Golden Triangle. At the conclusion of an extensive data review and re-interpretation, a highly effective and flexible exploration plan has been developed, with contingencies for various outcomes at several stages.
The 2018 work will focus on the westernmost part of the Corey property, in a largely unexplored belt adjacent to Garibaldi Resources’ E & L nickel discovery (see attached figure). At its southern end, this belt encompasses the Company’s Red Lightning prospect, in which drilling has returned up to 0.55% Ni over 10 m from magmatic sulphides hosted by mafic intrusive rocks.
In the same area, a belt of quartz-sericite-pyrite altered volcanic rocks is coincident with an extensive Au-in-soil geochemical anomaly and a number of encouraging broad and locally high-grade drill intercepts (e.g. 99.4 g/t Au over 1.5 m) and chip samples of up to 51.9 g/t gold. This is the partially-explored gold-rich C10-GFJ trend, within which a portion of the trend, bracketed by some of the most encouraging drill and surface sampling results, remains untested.
Exploration will begin with a deep-imaging VTEM airborne geophysical survey, which has been employed to great effect by Garibaldi Resources. The survey will be flown over the length of the prospective belt, encompassing our virtually unexplored western border next to Garibaldi Resources and Metallis Resources, and extending southeast over the Red Lighting Ni-Cu Trend. An extensive ground-based field program will follow, consisting of prospecting, rock, soil, and stream sediment sampling, along with reconnaissance mapping. The work on the ground will help to identify drill targets.
Each FT Unit comprises one (1) common share of the Company and one-half (½) of one (1) common share purchase warrant. Each full warrant (a “Warrant”) entitles the holder to acquire one (1) common share at a price of $0.40 until the earlier of (i) two (2) years from closing of the Offering (the “Closing”); and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at least $0.60 for ten (10) consecutive trading days, and the 10th trading day (the “Final Trading Day”) is at least four (4) months from the Closing, the date which is thirty (30) days from the Final Trading Day (the “Trigger Date”).
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 $0.40 until the earlier of (i) two (2) years from the Closing; and the Trigger Date.
All securities issued pursuant to the Offering are subject to a statutory four month hold period and regulatory approval.
A Communication Agreement with the Tahltan First Nation is now in place, and Camp permitting is well underway. Overall, the outlined 2018 plans will leave us well poised for a highly effective 2019 season, with excellent drill targets based on solid geological, geochemical and geophysical data.