Eskay buys 19.5% stake in Garibaldi Resources, shares up

Image from Garibaldi Resources.

Eskay Mining (TSXV: ESK) has entered an agreement to acquire approximately 23.7 common shares of Garibaldi Resources (TSXV: GGI), valued at C$10.78 million.

In consideration, Eskay will issue 4.21 million working capital units at a price of C$2.56 per unit. Each unit consists of one common share of the company and one common share purchase warrant.

Each warrant entitles the holder thereof to purchase one common share at a price of C$2.82 each until the earlier of: (i) the date which is two 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 C$3.72 for 20 consecutive trading days, and the 20th trading day is on or after August 1, 2021, the date which is 30 days from the final trading day.

The acquisition by Eskay represents 19.5% of the current issued and outstanding shares of Garibaldi, which recently drilled its deepest nickel-copper yet at its E&L deposit, located within the Eskay mining camp of northwestern British Columbia.

Shares of Eskay Mining surged to a 52-week high on Friday on the latest acquisition. The stock was up 9.2% to C$3.08 a share by 12:30 p.m. EST, giving the Toronto-based miner a market capitalization of C$481.9 million.

Shares of Garibaldi Resources also soared, up 21.8% to C$0.48 a share. The company’s market capitalization stands at C$46.96 million.

More News