Eskay Mining Announces Closing Further Tranche of Its Flow-Through Private Placement
TORONTO, ONTARIO -- (Marketwire) -- 07/05/10 -- ESKAY MINING CORPORATION (TSX VENTURE: ESK)(FRANKFURT:878 985)(BERLIN:878 985) ('Eskay' or the 'Company') wishes to announce that further to its press release of June 23, 2010, the Company has completed the sale of a further 2,200,000 units on a flow-through basis (the 'FT Units') priced at $0.25 per FT Unit for gross proceeds of $550,000 (the 'FT Offering'). A cash fee of $44,000 and 176,000 broker warrants to acquire non flow-through common shares at a price of $0.25 per share for 12 months from closing.
To date the Company has closed $2,704,000 of FT Units and $212,010 of WC Units. Mac Balkam, CEO states 'The Company is pleased to have raised sufficient funding to commence an extensive exploration and drilling program on the SIB/Lulu ground which is optioned from St Andrew Goldfields. On completion of this program, Eskay will have earned an 80% interest in the 33,000 hectare property. Completion of this fundraising and work program in this environment is an important milestone for the Company.'
The Company continues to offer up to a further 1,184,000 FT Units and up to a further 6,439,950 WC Units on the same terms as in the Corporation's June 4, 2010 press release.
All of the securities referred to herein are legended and restricted from trading until at least November 1, 2010.
The current issued and outstanding capital is 85,725,111, after the above mentioned issuance of shares.
Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
ESKAY MINING CORPORATION
info@kenrich-eskay.com
www.eskaymining.com