Skeena announces bought deal to fund Eskay Creek NSR buyback

Aerial view of Eskay Creek. Credit: Skeena Resources

Skeena Resources (TSX: SKE; NYSE: SKE) has announced a bought deal financing of C$30 million to fund its buydown of a net smelter return (NSR) currently held by Barrick Gold. A syndicate of underwriters led by Raymond James will purchase 4.96 million Skeena common shares at C$6.05 per share. There is also an over-allotment option to purchase nearly 744,000 shares, exercisable for 30 days.

Skeena is currently focused on revitalizing the past-producing Eskay Creek gold-silver mine located in the Golden Triangle of northwest BC. It previously operated from 1994 to 2008 as an underground mine, producing 3.3 million oz. of gold at an average grade of 45 g/t and 160 million oz. of silver at average grade of 2,224 g/t, making it one of the highest-grade gold mines in the world during that time.