Skeena Resources Limited, a key player in the precious metals mining sector, has announced a significant development in its financing strategy. The company has filed a prospectus supplement related to a bought deal offering expected to generate approximately C$125 million. This initiative is part of Skeena’s ongoing efforts to advance its flagship projects, particularly in the mineral-rich region of British Columbia.
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Details of the financing agreement
In partnership with a group of underwriters led by BMO Capital Markets, Skeena plans to offer 5,210,000 common shares at a price of C$24.00 each.
This strategic move aims to capitalize on current market conditions, enhancing the company’s capital base to support further development of its mining projects. If fully realized, the total gross proceeds from this offering would reach approximately C$125,040,000.
Over-allotment option enhances financial flexibility
Skeena has introduced an over-allotment option for its underwriters, permitting the purchase of up to an additional 781,500 common shares within 30 days following the close of the offering. If fully exercised, this option could elevate total proceeds to approximately C$143,796,000. This financing strategy aims to respond to potential market demand and allows Skeena to effectively navigate its financial path.
Regulatory considerations and timelines
Skeena’s shares will be offered through a prospectus supplement that enhances its existing base shelf prospectus. This offering is available in all provinces of Canada, except Quebec, and is also accessible to U.S. investors via a specific prospectus supplement under the Form F-10 registration statement. The anticipated closing date for this offering is around October 8, contingent upon obtaining all necessary regulatory approvals, including those from the Toronto Stock Exchange and the New York Stock Exchange.
Accessing the prospectus
Investors seeking details about the offering can find the relevant documents on Skeena’s issuer profile on SEDAR+. The base shelf prospectus and any amendments will be accessible there. Additionally, investors can request both electronic and paper copies of the prospectus at no charge. It is advisable for potential investors to carefully review the base shelf prospectus and related documents prior to making investment decisions.
About Skeena Resources Limited
Skeena Resources Limited is a prominent player in the mining sector, focusing on the exploration and development of its Eskay Creek Gold-Silver Project. Situated in Canada’s renowned Golden Triangle, this location is not only historic but is set to become one of the most productive and cost-effective precious metals operations worldwide. Skeena is dedicated to sustainable mining practices and actively collaborates with Indigenous communities, including the Tahltan Nation, to ensure its operations positively impact local economies and environments.
Commitment to sustainability
Skeena prioritizes sustainability by maximizing the potential of its mineral resources while minimizing environmental impacts. This strategy aligns with contemporary ethical standards and ensures long-term value for stakeholders and the communities in which it operates.
Contact information
Galina Meleger
Vice President, Investor Relations
Email: [email protected]
Phone: 604-684-8725
Skeena’s corporate headquarters is located at Suite #2600 – 1133 Melville Street, Vancouver, BC V6E 4E5.
Forward-looking statements
This announcement includes forward-looking statements, which carry inherent risks and uncertainties. These statements encompass predictions regarding the timing of the offering, anticipated proceeds, and market conditions. It is essential for investors to recognize that actual results may differ significantly from these expectations due to various factors, such as regulatory approvals, market dynamics, and operational challenges.
Investors are advised to conduct thorough due diligence and review the offering documents for detailed insights into the associated risks and opportunities before making any investment in Skeena Resources.
