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Skeena tops ups coffers with C$57.5M placement

Skeena Resources has raised a further C$57.5 million to advance its two former Barrick Gold projects in British Columbia’s Golden Triangle, Eskay Creek and Snip.
Skeena tops ups coffers with C$57.5M placement Skeena tops ups coffers with C$57.5M placement Skeena tops ups coffers with C$57.5M placement Skeena tops ups coffers with C$57.5M placement Skeena tops ups coffers with C$57.5M placement

Skeena Resources will use the proceeds for exploration and development at Eskay Creek and Snip in BC

Staff reporter

The 15% over-allotment option was fully exercised in the bought-deal placement priced at $3.10.

Skeena said last week Barrick held 10.8% and had the right to maintain its pro-rata ownership interest via participation in future financings.

Skeena had raised $20 million at $4.50 per flow-through share for exploration in February.

It had also welcomed a $5 investment from Tahltan Nation in April.

Skeena recently told Mining Journal it was planning to launch a 25,000m exploration drilling programme at Eskay Creek this month to grow its resource base, amid interest from gold producers.

An April update put Eskay Creek's measured and indicated resources at 5.3 million ounces gold-equivalent grading 4.3g/t and an inferred 298,000oz Au-eq at 1.6g/t.

Skeena is aiming to complete a prefeasibility study for Eskay Creek this summer and a feasibility study by early 2022, following a robust preliminary economic assessment late in 2019.

At Snip, where Hochschild Mining has the option to acquire 60%, drilling results earlier this month included 5.6m at 45.76g/t gold.

Skeena shares (TSX: SKE) closed up 5.5% to $3.46, at the upper end of a one-year range, capitalising it about $825 million (US$686 million).