Vancouver, BC (September 16, 2022) Skeena Resources Limited (TSX: SKE; NYSE: SKE) (“Skeena” or the “Company”) announced today that it has entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 4,958,678 common shares of the Company (the “Common Shares”) at a price of C$6.05 per Common Share, for total gross proceeds of approximately C$30 million (the “Offering”). The Company will also grant to the Underwriters an over-allotment option (the “Over-Allotment Option”) to purchase up to 743,801 additional Common Shares (the “Over-Allotment Shares”). The Over-Allotment Option will be exercisable for a period of 30 days following closing.
The Common Shares will be offered by way of a prospectus supplement (the “Supplement”) to the Company’s base shelf prospectus in all of the provinces of Canada, except the province of Québec. The Supplement will also be filed with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10 (File No. 333-267434) in the United States under the multi-jurisdictional 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 their right (subject to the terms and conditions of the Company’s buy-back rights) to buy down a 0.5% NSR royalty currently held by Barrick Gold Corporation, for a payment of C$17.5mm, as well as general administration and corporate purposes.
The Offering is expected to close on or about September 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 at www.sec.gov or on the SEDAR website at www.sedar.com. 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 Limited. at Suite 650, 1021 West Hastings St, Vancouver, BC, V6E 0C3 Canada telephone (604) 684-8725.
No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.
About Skeena
Skeena Resources Limited 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 4.00 g/t AuEq, an after-tax NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag. Skeena is currently continuing exploration drilling at Eskay Creek.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
CEO & Director
Contact Information
Investor Inquiries: info@skeenaresources.com
Office Phone: +1 604 684 8725
