Mr. Walter Coles reports
SKEENA RESOURCES CLOSES C$34.5 MILLION BOUGHT DEAL OFFERING OF COMMON SHARES
Skeena Resources Ltd. has closed the previously announced bought-deal offering of 5,702,479 common shares of the company at a price of $6.05 per common share for gross proceeds of $34,499,997, which includes the exercise in full by the underwriters of their overallotment option to purchase up to an additional 743,801 common shares at the offering price.
The common shares are 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, and are offered in the United States pursuant to the company's registration statement on Form F-10 (File No. 333-267434) filed under the multijurisdictional disclosure system adopted by the United States and Canada, and on a private placement basis in certain jurisdictions outside Canada and the United States pursuant to applicable prospectus exemptions.
Raymond James Ltd. acted as sole book runner for the offering, on behalf of a syndicate of underwriters which includes BMO Nesbitt Burns Inc., Clarus Securities Inc., Canaccord Genuity Corp. and RBC Dominion Securities Inc. (collectively, the underwriters).
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 (net smelter return) royalty currently held by Barrick Gold Corp., for a payment of $17.5-million, as well as general administration and corporate purposes.
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.
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