Eskay Mining Corp. (TSXV: ESK) and P2 Gold Inc. (TSXV: PGLD) announced the termination of their non-binding letter of intent dated June 4, 2024. The agreement, which outlined the terms for Eskay’s acquisition of P2, has been called off “due to market conditions.”

The initial letter agreement detailed Eskay’s plan to acquire P2 in a business combination transaction, aiming to strengthen their exploration and development efforts in the Golden Triangle of British Columbia and Nevada. Under the terms, P2 shareholders were supposed to receive 0.2778 of an Eskay share for each P2 share held.

Despite the termination of the acquisition agreement, the companies have committed to continuing their collaboration on exploration activities. The concurrent exploration agreement, signed alongside the letter agreement, will remain in effect. This agreement mandates P2 to execute an exploration program on the Eskay-Corey Property for the 2024 season, with exploration crews set to mobilize this week.

The exploration program at the Eskay-Corey Property will be a major focus for both companies this year. This property, located in the mineral-rich Golden Triangle, is considered highly prospective for gold and copper discoveries.

Eskay currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares).

Eskay Mining last traded at $0.28 while P2 Gold last traded at $0.075 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.