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Eskay Mining and Seabridge Gold Terminate Amended Cost Sharing Agreement to Finance Coulter Creek Access Road
TORONTO, ON / ACCESSWIRE / June 7, 2023 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK...
About this update from Eskay Mining Corp
[{"type":"text","content":"Eskay Mining and Seabridge Gold Terminate Amended Cost Sharing Agreement to Finance Coulter Creek Access RoadTORONTO, ON / ACCESSWIRE / June 7, 2023 / Eskay Mining Corp. (\"Eskay\" or the \"Company\") (TSXV:ESK) (OTCQX:ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) wishes to announce that, further to its News Release of November 12, 2021, Eskay, Seabridge Gold Inc. (\"Seabridge\") and Seabridge's wholly-owned subsidiary, KSM Mining ULC (\"KSM\"), have signed an agreement (the \"Termination and Mutual Release Agreement\") to terminate the amended agreement (the \"Amended Cost Sharing Agreement\") whereby Seabridge and Eskay were to fund the costs of construction of the first 9 kilometres (the \"First Segment of the CCAR\") of the Coulter Creek Access Road (\"CCAR\"), estimated to cost $12.5 million, with a limit on Eskay's contribution to a maximum of $6,250,000. Seabridge provided Eskay with a $3 million revolving loan facility at an interest rate of 3% per year to give Eskay flexibility with funding its share of the costs of construction.At the end of 2022, the costs incurred in respect of the construction of the First Segment of the CCAR were approximately $6 million. Seabridge had suspended delivering cash calls before year end and Eskay's share of cash calls to year end was funded through the drawdown of approximately $2.7 million of the loan facility provided by Seabridge pursuant to the Amended Cost Sharing Agreement. Seabridge completed 3.2 km of the road in 2022 and due to Seabridge concentrating its current road building activities on its Treaty Creek Access Road, it is uncertain when Seabridge will complete the First Segment of the CCAR.Eskay will not have access to or use of the First Segment of the CCAR for its 2023 exploration program. Therefore, Eskay, Seabridge and KSM agreed to terminate the Amended Cost Sharing Agreement and release each other from all obligations under the Amended Cost Sharing Agreement including any obligations relating to the completion of the First Segment of the CCAR, any obligation of Eskay to contribute to construction costs relating to the First Segment of the CCAR or any obligation of Seabridge to provide further loans or of Eskay to repay loans provided by Seabridge, or interest thereon. In addition, the 500,000 Bonus Warrants issued to Seabridge were cancelled.Pursuant to the terms of the Termina...