Surprise! The two companies announced yesterday that Eskay Mining has agreed to acquire P2.

It might be viewed as a merger, but it’s actually a buyout, since Eskay is purchasing all of P2’s shares.

Our shares will be exchanged for 0.2778 of a common share in Eskay. We will own approximately 20% of the combined company.

The stock fell yesterday, probably because the market would’ve preferred P2 to pursue Gabbs on their own. But the company ran out of runway on the financing-royalty option and had to take the deal.

P2 management will be running the combined company, which will have a market cap north of $80M once it closes. This will give them better access to capital markets to advance Gabbs. Current Eskay CEO Mac Balkam will become Chair of the combined company.

Also, ESK has one of the best pieces of ground in the Golden Triangle without a major discovery to date. Management expects to be on the ground exploring by July and drilling in August. This will be the initial exploration focus of the company.

The stock today is even at the time of writing. Jeff continues holding his position.

Courtesy of the Gold Advisor