Eskay sets debt settlement price at 21 cents per share
October 20 2016
Mr. Mac Balkam reports:
ESKAY ESTABLISHES DEBT SETTLEMENT PRICE
Further to its press release of Sept. 21, 2016, Eskay Mining Corp. issued a press release relating to its summer exploration program on Oct. 17, 2017, and the closing price of the company's common shares on Oct. 19, 2016, was 25 cents. Therefore no adjustment to the price at which debt is to be settled is required and the Company will settle an aggregate of $341,682.47 of management fees owed to a company controlled by the President and CEO of the Company in consideration for the issuance of 1,627,059 common shares of the Company at a price of $0.21 per share. The debt settlement remains subject to TSX Venture Exchange approval and approval of the disinterested shareholders voting at the Annual and Special meeting of the shareholders of the Company to be held on Wednesday November 2, 2016. The securities to be issued will be subject to a hold period of four months and a day.
The insider debt settlement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 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 insider does not exceed 25% of its market capitalization.
About Eskay Mining Corp:
Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals in British Columbia in a highly prolific, poly metallic area known as the Eskay Rift Belt located in the "Golden Triangle", 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).
We seek Safe Harbor.