NR: 24-05

Vancouver, BC (June 25, 2024) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena” or the “Company”) is pleased to announce that it has secured a financing package totaling US$750 million (equivalent to over C$1 billion) with Orion Resource Partners (“Orion”) for the development, construction, and general working capital required to advance the Company’s 100%-owned Eskay Creek Gold-Silver Project (“Eskay” or the “Project”).

This complete funding package significantly de-risks the Project and provides Skeena with optionality, flexibility and stakeholder alignment as the Company progresses Eskay towards production in the first half of 2027.  

The package provides a significant portion of financing prior to Skeena’s receipt of required permits in respect to the Eskay project and therefore, allows the Company to advance the project on the most efficient and expedient schedule to production.

.

Financing Package Highlights:

The total financing package of US$750 million is comprised of an equity investment, gold stream, senior secured loan, and a cost over-run facility:

• US$100 million equity investment priced at a meaningful premium to the Company’s five-day volume weighted average share price. 
• US$200 million gold stream with option to buy back up to 66.7% for 12-month period after start of commercial production (the “Gold Stream”).
• US$350 million of committed capital available from a senior secured loan with 1% standby fee and no break fee (the “Senior Secured Loan”).
• US$100 million cost over-run facility in the form of an additional gold stream subject to the same standby terms as the Senior Secured Loan (the “Cost Contingency”).

.

.

.

Walter Coles, Executive Chairman of Skeena, commented: 

“This complete financing package is a result of a competitive and comprehensive process undertaken to find the best financing solution for the Company.

 

“The result is certainty of funding to advance Eskay into production while balancing attractive cost of capital, flexibility, and optionality.

 

“We welcome Orion alongside existing shareholders as an aligned and committed stakeholder, further validating the merits of the project.

 

“We designed the financing package to provide the Company with important strategic flexibility and significant funding prior to final permits, while maintaining optionality as we continue working to maximize stakeholder value by advancing the Project.

 

“On the back of our positive definitive feasibility study released in November 2023, this financing package lays the foundation on which we build Eskay – unlocking value for all our stakeholders as we progress through this stage of growth.”

.

To View Skeena Resources’ historical news, please click here

.

——-

.

To read the full news release, please click HERE

.

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds no shares in Skeena Resources.

.