Skeena Resources Limited announced a new bought deal financing, entering into an agreement with underwriters led by BMO Capital Markets. The underwriters agreed to purchase 5,210,000 common shares at C$24.00 per share, for aggregate gross proceeds of approximately C$125 million. The company also granted an over-allotment option for an additional 15% of the offering.
The proceeds from this offering are intended for the continued advancement of the Eskay Creek gold-silver project and for general corporate purposes. This funding is expected to provide sufficient liquidity to complete permitting, which is a condition precedent to accessing the balance of the US$750 million financing package with Orion Resource Partners. As of September 30, the company had unaudited cash of approximately C$105 million.
However, the company also disclosed an unanticipated delay in the government permitting process due to a current BC government employee strike. Negotiations with the Tahltan Central Government regarding the Impact Benefits Agreement are progressing, but the ratification vote date remains unscheduled. Walter Coles, Executive Chairman, noted this funding provides flexibility to pursue less expensive financing alternatives and represents approximately 4.5% dilution to the company's total market capitalization.
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