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Eskay Mining Enters into Amended Cost Sharing Agreement with Seabridge Gold to Finance Coulter Creek Access Road
TORONTO, ON / ACCESSWIRE / November 12, 2021 / Eskay Mining Corp. ("Eskay" or the "Company") ...
About this update from Eskay Mining Corp
[{"type":"text","content":"Eskay Mining Enters into Amended Cost Sharing Agreement with Seabridge Gold to Finance Coulter Creek Access RoadTORONTO, ON / ACCESSWIRE / November 12, 2021 / Eskay Mining Corp. (\"Eskay\" or the \"Company\") (TSXV:ESK)(OTCQX:ESKYF)(Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce that, further to the Joint News Release of Eskay Mining and Seabridge Gold Inc. issued July 5, 2021 (the \"Previous News Release\"), it has entered into an amended agreement (the \"Amended Cost Sharing Agreement\") whereby Seabridge and Eskay Mining have amended the terms of their original agreement to share equally 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, including to introduce a limit on Eskay's contribution to a maximum of $6,250,000 and eliminate the sale by Eskay of a convertible debenture.As background, the CCAR is one of two main access roads planned and permitted for Seabridge's 100% owned KSM project situated within the Golden Triangle in British Columbia, Canada. The road is designed to connect the KSM project with the existing Eskay mine road to the northwest. Substantially all of the First Segment of the CCAR is situated on mineral tenures held by Eskay Mining. As a result of delays in settling the principal construction contract and having to change the route of the road as a result of surface access issues, commencement of construction was delayed. A portion of the First Segment of the CCAR was completed between August 20 and October 22, 2021 when winter shutdown was implemented. Certain materials required for the construction of the road were purchased in 2021 so that they will be available for construction when needed. Construction of the First Segment of the CCAR will continue in 2022.Eskay Mining's President and CEO, Mac Balkam stated \"once the First Segment of the CCAR is complete, we will have use of the First Segment of the CCAR for a minimum of 15 years pursuant to a Road Access Agreement subject to payment of our pro rata share of maintenance costs. This will provide Eskay Mining with a tremendous benefit as it continues exploration on its 100% owned Consolidated Eskay precious metal-rich volcanogenic massive sulphide (\"VMS\") project in the Golden Triangle, British Columbia. This summer, Eskay Mining co...