CAPITAL MARKETS

Skeena well-supported to advance gold projects in BC

Raises C$46M

Staff reporter

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The company had announced the overnight marketed public offering earlier this month and was originally aiming to raise $35 million.

Barrick Gold, which held 12.4%, had the right to maintain its pro-rata ownership interest in future financings, Skeena said.

Skeena acquired Eskay Creek from Barrick in a transaction which closed in October.

The company is focused on infill and exploration drilling at Eskay Creek to advance the project to prefeasibility, slated for the first half of 2021.

A 2019 preliminary economic assessment had outlined initial capex of US$223 million, after-tax NPV5 of $491 million and IRR of 51%, for an 8.6-year mine producing an average annual 236,000 ounces of gold and 5.8 million ounces of silver, or 306,000oz gold-equivalent.

At Snip, acquired from Barrick in 2017, Skeena has planned a 5,000m resource expansion drilling programme.

It had unveiled a maiden resource in July of an indicated 244,000 ounces of gold and inferred 402,000oz. 

Skeena last raised about $15 million in March at $1.155 per British Columbia super-flowthrough share, and $18.2 million in April through the issue of more BC super-flowthrough shares and national flowthrough shares priced at $1.05.

Its shares, which graduated to the TSX in August (TSX: SKE), closed down 1c or 0.4% to $2.53 yesterday, valuing it about $541 million (US$413 million).

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