Eskay Mining Corp V.ESK

Is this what Sprott has to give up to get a big piece of ESK

[Dormie18]

Eskay Agrees to Acquire 19.5% of Garibaldi Resources Corp from The Sprott Foundation

February 5, 2021

TORONTO, ON / ACCESSWIRE / February 5, 2021 / Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK)(OTCQB:ESKYF)(Frankfurt:KN7) (WKN: A0YDPM) wishes to announce that it has entered into an agreement with The Sprott Foundation to acquire 23,703,688 common shares of Garibaldi Resources Corp. (“GGI”) valued at $10,782,000 (the “Acquisition”) in consideration for the issuance of 4,211,719 working capital units (the “WC Units”) of Eskay at price of $2.56 per WC Unit. Each WC Unit consists of one (1) common share (a “Common Share”) of the Company and one (1) common share purchase warrant (a “WC Warrant”). Each WC Warrant entitles the holder thereof to purchase one (1) Common Share of the Company (a “WC Warrant Share”) at a price of $2.82 per WC Warrant Share until the earlier of: (i) the date which is two (2) years following the closing of the Acquisition; and (ii) in the event that the closing price of the Common Shares on the TSX Venture Exchange is at least $3.72 for twenty (20) consecutive trading days, and the 20th trading day (the “Final Trading Day”) is on or after August 1, 2021, the date which is thirty (30) days from the Final Trading Day. The Acquisition represents 19.5% of the current issued and outstanding shares of GGI. The Acquisition is being made for investment purposes. The Acquisition is subject to TSX Venture Exchange approval and is anticipated to close immediately following receipt of regulatory approval.

[megacopper]

Well it's a win win for Sprott and Eskay Mining. ESK get a piece of ownership in GGI and Sprott gets shares in ESK. Who knows what is going on behind the scenes but perhaps ESK would like to take out GGI all together eventually to increase their land holdings and the nickel that GGI has is not to be sneezed at and GGI has precious metals as well with the possibility of Eskay type deposits on

[goldanalyst]

GGI has good properties but horrible management...I have no idea what sprott is doing with it unless they plan on removing management...they are completely inept.....if management is replaced...I willl buy GGI..GGI was one of my most dissapointing investments and sold during tax loss season....

[waitingstill]

I don't think Sprott has any ESK. According to NR, you ESK takes 20 percent of GGI, GGI takes 3 percent or so of ESK and Sprott foundation is out. Don't see where you are getting that Sprott is actually involved. Whatever it is. Market seems to be okay with it. That is good.

[megacopper]

  Sprott sold his GGI shares in exchange for ESK shares. His foundation is now a shareholder of ESK correct??? Basically Sprott gave up his ownership in GGI in exchange to be apart of ESK. And it wouldn't surprise me to see ESK take out GGI in the future if they so desired. That is what I was saying. Follow the money trail. 

[waitingstill]

Man, can't believe that I missed that. Guess that is what I get for reading it at 6am. Lol. Okay, makes more sense now. Sprott swapped out his Nickel GGI for ESK gold shares. We get 20 percent of GGI. I think the warrants are key here. If Sprott exercises and there seems to be a clause which he may have to, then we will have more cash to drill up to 40k m that QH mentioned. Excellent!

[tbnorthstar]

ESK taking GGI paper from Sprott is to go for the gold, not the nickel/copper. Lots more stuff coming, at least that is what I am hearing. Sprott gets a toehold in ESK. Eric & Quinton are still close.

[Dormie18]

GGI borders the JV area (80% ESK-20% KL). Eskay gets battery buzz and ESG imprimatur.

[tbnorthstar]

I will repeat, ESK did the deal for the gold. Eric gets ESK paper....more to come? you just never know, but with Eric & Quinton working together anything is possible.

[Dormie18]

Good, we'll re-name "Nickel Mountain" as GGI calls it to "Nickel-Gold Mountain" for purposes of Eskay investors. Works for me. Meanwhile, when Redditt investors look at Garibaldi's website they will see Nickel and Copper and buy it for batteries. GGI stock has been a dog. ESK is buying it at the bottom. As GGI regains support, ESK goes higher. We can re-name you Lode

[likeike]

FWIW I think QH is thinking there mite be VMS trends that run into Garabaldi though I have not seen exactly where they border the ESK/KL property. QH mite do a few drill holes to see how promising and then just do a take out if Garbaldi remains such a basket case but what do I know? IKE