Skeena Resources Closes Strategic C$30.9m Franco-Nevada Investment

Skeena Resources Closes Strategic C$30.9m Franco-Nevada Investment

Skeena Resources Limited (TSX:SKE) has closed the structured non-brokered private placement offering with Franco-Nevada Corporation.

Skeena collected gross proceeds of C$30.9 million from the sale of 1,471,739 flow through common shares at a price of C$21.00 per share. Franco-Nevada was the end purchaser of the common shares issued in connection with the Offering. The gross proceeds of the Offering will be used to incur Canadian exploration expenses.

Concurrent with the closing of the Offering, Skeena granted to Franco-Nevadaa right of first refusal over the sale of a 0.5% net 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 Limited is a Canadian mining exploration and development company focused on revitaliding 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 g/t AuEq, an after-tax NPV5% of C$1.4B, 56% IRR, and a 1.4-year payback at US$1,550/oz Au.

Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to full Feasibility Study in Q1 2022.

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