Currently viewing Global edition

Skeena rattles the tin for C$20 million

Skeena Resources (TSXV:SKE) has announced plans to raise C$20 million (US$14.6 million) for further exploration at its projects in British Columbia’s Golden Triangle, following successful phase one infill drilling at Eskay Creek.
Skeena rattles the tin for C$20 million Skeena rattles the tin for C$20 million Skeena rattles the tin for C$20 million Skeena rattles the tin for C$20 million Skeena rattles the tin for C$20 million

Skeena Resources’ Eskay Creek project in British Columbia

Staff reporter

It said the fully-subscribed, non-brokered private placement was priced at $1.155 per flow-through share.

The company, which is looking to revitalise the former Barrick mines Snip and Eskay Creek acquired in 2017, last raised $16 million in an oversubscribed placement in December at 82c per flow-through share.

Skeena also recently agreed to sell its GJ copper-gold project, 30km from the Red Chris mine, to the mine's majority owner Newcrest Mining (ASX: NCM) for $7.5 million.

"Advancing the Eskay Creek project is Skeena's primary focus," CEO Walter Coles said at the time.

A preliminary economic assessment for Eskay Creek released in November showed the former mine had "a bright future ahead", outlining initial capex of $303 million (US$233 million) and a 51% IRR, with average annual production of 236,000 ounces of gold and 5.8 million ounces of silver over 8.6 years.

Final assays from 2019 drilling at Eskay Creek announced last month included 14.33m at 22.59g/t gold-equivalent.

Skeena shares increased four-fold from 34c a year ago to $1.21 in February.

They gained 6.2% yesterday to close at 86c, capitalising it at $107 million (US$78 million).