Eskay Mining Corp. (TSXV:ESK) signed a letter of intent to acquire P2 Gold Inc. (TSXV:PGLD) for CAD 11.2 million on June 4, 2024. Under the terms of the Letter Agreement, each outstanding common share in the capital of P2 on a diluted basis, will be exchanged for 0.2778 of a common share in the capital of Eskay, subject to customary adjustment. Upon completion of the Proposed Transaction, existing Eskay shareholders are expected to own approximately 80% of the combined company and P2 shareholders are expected to own approximately 20% of the Combined Company. The Combined Company will be managed by the team that discovered and developed the Brucejack Mine in the Golden Triangle. Joe Ovsenek, currently President and CEO of P2 will become President and CEO of the Combined Company and Mac Balkam, currently President and CEO of Eskay will become Chair of the Combined Company.

Completion of the Proposed Transaction will be subject to customary closing conditions including two-thirds of the votes cast by shareholders of P2, approval of Eskay shareholders, receipt of necessary court and regulatory approvals including Exchange approval. Subject to receipt of all necessary approvals, the Proposed Transaction is expected to close by no later than on October 31, 2024.