Eskay Mining Purchases 19.5% Stake In Garibaldi Resources From Sprott Foundation

The Sprott Foundation evidently is looking to unload a sizeable portion of its ownership in Garibaldi Resources (TSXV: GGI). It was announced this morning that the company would be disposing of 23.7 million shares of the company via a transaction with Eskay Mining Corp (TSXV: ESK), whom is set to take a 19.5% stake in Garibaldi.

The transaction will see Eskay take possession of 23.7 million shares of Garibaldi, currently valued at $10.8 million, in consideration for the issuance of 4.2 million units. Each unit, priced at $2.56 per unit, contains one common share and one common share purchase warrant.

Each warrant issued is valid for a period of two years following closing of the transaction, and contains an exercise price of $2.82 per common share. Eskay can also force the acceleration of the warrant in the event that its equity closes above $3.72 for a period of twenty consecutive days.

Following the close of the transaction, it is believed that the Sprott Foundation will continue to hold 15.6 million shares of Garibaldi, based on filings made by Eric Sprott in December.

Eskay Mining last traded at $2.82 on the TSX Venture.


Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Eskay Mining: VMS Deposits Make Junior Miner an Interesting Speculation

On December 22, Eskay Mining Corp. (TSXV: ESK), a precious and base metals exploration company...

Saturday, December 26, 2020, 09:08:02 AM

Garibaldi Assays 93.29 G/T Gold In Channel Sample At Casper

Garibaldi Resources (TSXV: GGI) this morning reported assay results from its Casper project, located in...

Tuesday, September 29, 2020, 08:21:21 AM

Garibaldi Resources Adds Mark Scott to its Executive Team

Garibaldi Resources (TSXV: GGI) has announced that Mark Scott will be taking on the position of...

Wednesday, February 12, 2020, 01:08:40 PM

Garibaldi Resources Intersects 9.1 G/T Gold over 0.72 Metres At Eskay Property

Garibaldi Resources (TSXV: GGI) this morning reported assay results from four shallow drill holes conducted...

Friday, February 12, 2021, 08:14:18 AM

BRIEF: Garibaldi Resources – Follow the Money

Garibaldi Resources Corp (TSXV: GGI) has had investors on a wild ride as of late....

Tuesday, December 12, 2017, 07:00:51 AM