Currently viewing Global edition

Skeena well-supported to advance gold projects in BC

Skeena Resources has raised C$46 million at $2.35 per share to advance its past-producing Eskay Creek and Snip precious metals projects in British Columbia’s Golden Triangle.
Skeena well-supported to advance gold projects in BC Skeena well-supported to advance gold projects in BC Skeena well-supported to advance gold projects in BC Skeena well-supported to advance gold projects in BC Skeena well-supported to advance gold projects in BC

Skeena Resources’ Eskay Creek project in BC

Staff reporter

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).