12:41:07 EST Fri 27 Jan 2023
Enter Symbol
or Name

Skeena Resources Ltd (4)
Symbol SKE
Shares Issued 63,866,791
Close 2021-12-10 C$ 11.95
Recent Sedar Documents

Skeena Resources arranges $30.9M private placement

2021-12-13 10:49 ET - News Release

Mr. Walter Coles Jr. reports


Skeena Resources Ltd. has arranged a structured non-brokered private placement offering of 1,471,739 flow-through common shares at a price of $21 per flow-through common share for aggregate gross proceeds of approximately $30.9-million. Franco-Nevada Corp. will be the end purchaser of the common shares issued in connection with the offering.

In connection with the offering, Skeena will grant to Franco-Nevada right of first refusal (ROFR) over the sale of a 0.5-per-cent net smelter return (NSR) royalty over the Eskay Creek gold-silver project matching the portion of the existing Barrick royalty that can be bought back by the company. The ROFR granted to Franco-Nevada will be subject to a competitive auction process conducted by Skeena, in which Franco-Nevada will participate, prior to Oct. 2, 2023. If Skeena has not sold the royalty to Franco-Nevada or a third party by Oct. 2, 2023, Franco-Nevada will have the right to purchase the royalty for $22.5-million for a period of 30 days. In addition, upon closing of the offering, Skeena and Franco-Nevada will enter into an amendment to the terms of their existing royalty agreement such that it will cover the same tenures as are covered in the existing Barrick royalty agreement.

As noted, Skeena continues to have the right to buy down a 0.5-per-cent NSR royalty (from a 1-per-cent NSR royalty) currently held by Barrick, for a payment of $17.5-million, until Oct. 2, 2022.

Skeena plans to use the net proceeds of the offering to finance exploration activities on Eskay Creek. The closing of the offering is anticipated to occur on or before Dec. 23, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the Toronto Stock Exchange. The securities issued under the offering will be subject to a statutory hold period in Canada expiring four months and one day from the closing date. No finder's fees will be paid in connection with this offering.

About Skeena Resources Ltd.

Skeena Resources is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan territory in the Golden Triangle of northwest British Columbia, Canada. The company released a prefeasibility study for Eskay Creek in July, 2021, which highlights an open-pit average grade of 4.57 grams per tonne gold equivalent, an after-tax net present value 5 per cent of $1.4-billion, 56-per-cent internal rate of return and a 1.4-year payback at $1,550 (U.S.) per ounce gold. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to full feasibility study in Q1 2022.

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