Skeena Resources closes $30.9-million private placement by Franco-Nevada

Skeena Resources closes $30.9-million private placement by Franco-Nevada
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VANCOUVER – Skeena Resources Ltd. [SKE-TSX, NYSE], on December 23, 2021, closed the structured non-brokered private placement offering announced on December 13, 2021, with Franco-Nevada Corp.

Skeena collected gross proceeds of $30.9-million from the sale of 1,471,739 flow-through common shares at a price of $21 per share. Franco-Nevada Corp. [FNV- TSX, NYSE] was the end purchaser of the common shares issued in connection with the offering. Gross proceeds of the offering will be used to incur Canadian exploration expenses.

Concurrent with the closing of the offering, Skeena granted to Franco-Nevada a right of first refusal over the sale of a 0.5% smelter return (NSR) royalty over the Eskay Creek gold-silver project. In addition, Skeena and Franco-Nevada have entered 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.

Skeena Resources is focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan territory in the Golden Triangle of northwest British Columbia. The company released a prefeasibility study for Eskay Creek in July, 2021, which highlights an open-pit average grade of 4.57 g/t gold equivalent, an after-tax net present value at a 5% discount of $1.4-billion, 56% internal rate of return and a 1.4-year payback at US$1,550/oz 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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