Eskay Mining and P2 Gold have agreed to merge to enhance their focus on gold and copper exploration and development in the Golden Triangle of British Columbia and Nevada.
The two companies signed a non-binding letter of intent, whereby Eskay will acquire all issued and outstanding P2 shares in exchange for its shares based on an agreed exchange ratio.
Under the terms of the agreement, each P2 share will be exchanged for 0.2778 of a common share in Eskay, subject to customary adjustments.
The options and warrants for P2 shares will also become exercisable for Eskay shares on the same terms.
Post-transaction, current Eskay shareholders are expected to own almost 80% of the new entity, with P2 shareholders owning around 20%.
The combined entity will be managed by the team responsible for the discovery and development of the Brucejack Mine.
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By GlobalData
Initial exploration focus will be on the Eskay-Corey Property in the Golden Triangle, a region known for its rich mineral deposits.
In conjunction with the merger agreement, Eskay and P2 have signed an exploration services agreement for the 2024 season.
P2’s Gabbs Project in Nevada, which is at the PEA-stage for gold-copper, will complement Eskay’s Eskay-Corey Property, providing the combined company with year-round access for exploration and development activities.
The merger is poised to create a company with greater scale, improved access to capital markets, and a robust portfolio of exploration and development projects.
The deal will be completed through a court-approved plan of arrangement and is subject to customary closing conditions, including court and regulatory approvals.
Upon completion, P2 president and CEO Joe Ovsenek will take the helm as president and CEO of the combined company, while Eskay president and CEO Mac Balkam will serve as chair.
