CAPITAL MARKETS

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.

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

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

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).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.