Published: December 20, 2023 |

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Skeena Resources Limited has closed a financing package of $61 million (C$81 million) with Franco-Nevada Corporation to further develop Skeena’s 100 percent owned Eskay Creek Gold-Silver Project. The project is located in the Golden Triangle of Northwest British Columbia.

The financing package consists of the sale of a 1.0 percent net smelter return (NSR) royalty on Eskay Creek for $42 million (C$56 million) and a $19 million (C$25 million) unsecured convertible debenture. With this incremental royalty purchase, Franco-Nevada now holds a 2.5 percent NSR on all of Skeena’s Eskay Creek properties.

“Securing funding for the advancement of Eskay Creek to production is critical for Skeena. As a management team and shareholders ourselves, we are striving to minimize shareholder dilution in what is currently an extremely difficult capital markets environment for mine developers in Canada,” said Skeena’s Executive Chairman Walter Coles.

“To achieve this, we are pursuing less conventional financing pathways that limit the issuance of straight common equity. At $2,000/oz gold, this 1 percent royalty will add about $20 to Eskay Creek’s very low all In sustaining cost of $687/oz, which implies that Skeena will still maintain a very substantial profit margin,” added Coles.

Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the Eskay Creek and Snip Projects, two past-producing mines located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada.

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