Business
Eskay Announces Increase to Non-Brokered Private Placement
TORONTO, ONTARIO--(Marketwired - April 22, 2016) - Eskay Mining Corp. ("Eskay" or the "Company") (TSX VENTURE:ESK) is pleased to announce, further to the press
About this update from Eskay Mining Corp
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - April 22, 2016) - Eskay Mining Corp. (\"Eskay\" or the \"Company\") (TSX VENTURE:ESK) is pleased to announce, further to the press release issued this morning, the Company has decided to increase the offering to $200,000. The Company will therefore be undertaking a private placement offering of up to 2,000,000 working capital units (the \"WC Units\") of the Company at a price of $0.10 per WC Unit for up to $200,000 (the \"Offering\"). Each WC Unit comprises one (1) common share of the Company priced at $0.10 and one (1) common share purchase warrant (each a \"WC Warrant\"). Each WC Warrant entitles the holder to acquire one (1) common share at a price of $0.15 until the earlier of (i) two (2) years from Closing; and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at least $0.30 for twenty (20) consecutive trading days, and the 20th 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\"). Insiders of the Company will subscribe for up to $100,000 of the Offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (\"MI 61-101\") by virtue of the exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the insiders does not exceed 25% of its market capitalization. All securities issued pursuant to the Offering are subject to a statutory four month hold period and regulatory approval. The Company intends to have a first closing of the Offering, including subscriptions from insiders, on or before April 29, 2016, with the balance of the Offering, if any, closing on or before May 12, 2016. The proceeds from the private placement will be used to negotiate the repayment of a loan relating to the Company's SIB Property at Eskay Creek, British Columbia (the \"SIB Property\") to facilitate the transfer of the title of the SIB Property into the name of the Company and to provide the Company with working capital. The Company earned its 80% interest in the SIB Property on January 23, 2013 pursuant to an option agreement with St. Andrew Goldfields Ltd. (now k...