Mr. Walter Coles reports
SKEENA RESOURCES ANNOUNCES C$30 MILLION BOUGHT DEAL FINANCING
Skeena Resources Ltd. has entered into an agreement with a syndicate of underwriters led by Raymond James Ltd., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 4,958,678 common shares of the company at a price of $6.05 per common share, for total gross proceeds of approximately $30-million. The company will also grant to the underwriters an over-allotment option to purchase up to 743,801 additional common shares. The overallotment option will be exercisable for a period of 30 days following closing.
The common shares will be offered by way of a prospectus supplement to the company's base shelf prospectus in all of the provinces of Canada, except the province of Quebec. The supplement will also be filed with the U.S. Securities and Exchange Commission as part of the company's registration statement on Form F-10 (file No. 333-267434) in the United States under the multijurisdictional disclosure system adopted by the United States and Canada. Such documents contain important information about the offering.
The net proceeds of the offering will be used by the company to exercise its right (subject to the terms and conditions of the company's buy-back rights) to buy down a 0.5-per-cent NSR royalty currently held by Barrick Gold Corp., for a payment of $17.5-million, as well as general administration and corporate purposes.
The offering is expected to close on or about Sept. 22, 2022, subject to customary closing conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange, and the applicable securities regulatory authorities.
The company has filed a registration statement on Form F-10 with the SEC for the offering to which this communication relates. Before you invest, you should read the registration statement and other documents the company has filed with the SEC, and the supplement, when available, for more complete information about the company and this offering. You may get these documents for free by visiting EDGAR on the SEC website or on the SEDAR website. Alternatively, the company, any underwriter or any dealer participating in the offering, will arrange to send you the supplement, or you may request it from the corporate secretary of Skeena Resources at Suite 650, 1021 West Hastings St., Vancouver, B.C., V6E 0C3, Canada, telephone 604-684-8725.
About Skeena Resources Ltd.
Skeena 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 feasibility study for Eskay Creek in September, 2022, which highlights an open-pit average grade of four grams per tonne gold equivalent, an after-tax net present value at a 5-per-cent discount of $1.4-billion, an internal rate of return of 50 per cent, and a one-year payback at $1,700 (U.S.) per ounce gold and $19 (U.S.) per ounce silver. Skeena is currently continuing exploration drilling at Eskay Creek.
In accordance with National Instrument 43-101, Paul Geddes, PGeo, senior vice-president of exploration and resource development, is the qualified person for the company, and has reviewed and approved the technical and scientific content of this news release. The company strictly adheres to CIM (Canadian Institute of Mining, Metallurgy and Petroleum) best practices guidelines in conducting, documenting and reporting the exploration activities on its projects.
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