Canadian juniors Eskay Mining and P2Gold have announced that they will terminate their proposed business combination transaction, citing market conditions.
The companies earlier this month announced a nonbinding letter of intent to create a gold and copper explorer focused on the Golden Triangle of British Columbia and Nevada.
Concurrently with the letter of agreement, Eskay and P2Gold entered into an exploration agreement under which P2 agreed to plan and execute an exploration programme on the Eskay-Corey property for the 2024 exploration season. The companies have agreed to continue with the agreement and the mobilisation of exploration crews to site this week.
The Eskay-Corey project is the most prospective ground in the Golden Triangle without a major discovery to date, P2Gold president and CEO Joe Ovsenek said earlier this month. He would have taken on the role of CEO at the combined company.
Eskay-Corey has been shown to host several volcanogenic massive sulphide (VMS) targets and has the potential to host nickel/copper massive sulphide and several occurrences of vein-style mineralisation. Main VMS target areas on the property include the SIB-Lulu, TV-Jeff, C10, GFJ, and Spearhead zones.