VANCOUVER, British Columbia, Sept. 16, 2022 (GLOBE NEWSWIRE) — Skeena Resources Limited (TSX: SKE; NYSE: SKE) (“Skeena” or the “Company”) today announced that it has reached an agreement with a syndicate of underwriters led by Raymond James Ltd. (the “Underwriters”), pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 4,958,678 common shares of the Company (the “Common Shares”) at a price of C$6.05 per common share, for aggregate gross proceeds of approximately C$30 million (the “Offering”). The Company will also grant the underwriters an over-allotment option (the “Over-allotment Option”) to purchase up to 743,801 additional common shares (the “Over-allotment Shares”). The over-allotment option may be exercised for a period of 30 days following closing.
The Common Shares will be offered by way of a prospectus supplement (the “Supplement”) to the Company’s Base Shelf Prospectus in all provinces of Canada, except the Province of Quebec. The Supplement will also be filed with the United States Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10 (File No. 333-267434) in the United States. States under the multi-jurisdictional disclosure system. adopted by the United States and Canada. These documents contain important information about the Offer.
The net proceeds of the Offering will be used by the Company to exercise its right (subject to the terms and conditions of the Company’s repurchase rights) to repurchase a 0.5% NSR royalty currently held by Barrick Gold Corporation, for a payment of C$17.5 million, as well as general administration and corporate purposes.
The offering is expected to close on or about September 22, 2022, subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange and applicable securities regulatory authorities.
The Company has filed a registration statement on Form F-10 with the SEC for the Offering to which this communication relates. Before investing, you should read the registration statement and other documents the Company has filed with the SEC, as well as the Supplement, when available, for more complete information about the Company and this Offering. You may obtain these documents free of charge by visiting EDGAR on the SEC’s website at www.sec.gov or on the SEDAR website at www.sedar.com. Alternatively, the Company, any underwriter or dealer participating in the offer will arrange to send you the supplement or you may request it from the Corporate Secretary of Skeena Resources Limited. at Suite 650, 1021 West Hastings St, Vancouver, BC, V6E 0C3 Canada telephone (604) 684-8725.
No securities regulatory authority has approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be illegal prior to registration. or qualification under the securities laws of any such province, state or jurisdiction.
Skeena Resources Limited is a Canadian-based mining exploration and development company focused on the revitalization of the former Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company published a feasibility study for Eskay Creek in September 2022 which highlights an average open pit grade of 4.00 g/t AuEq, an after-tax NPV of 5% of C$1.4 billion, an IRR of 50% and a payback period of 1 year in the United States. $1,700/oz Au and US$19/oz Ag. Skeena is currently continuing exploration drilling at Eskay Creek.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
CEO and director
Investor requests: [email protected]
Office phone: +1 604 684 8725
Pursuant to NI 43-101, Paul Geddes, P.Geo., Senior Vice President, Exploration and Resource Development, is the Company’s Qualified Person and has reviewed and approved the technical and scientific content of this press release. The Company strictly adheres to CIM best practice guidelines in the conduct, documentation and reporting of exploration activities on its projects.
Caution Regarding Forward-Looking Statements
Certain statements and information contained or incorporated by reference in this press release constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities laws (collectively, “forward-looking statements”). These statements relate to future events or our future performance. The use of words such as “plans”, “believes”, “proposes”, “intends”, “generates”, “aims”, “is planned”, “is planned”, “intends”, “estimates”, ” expects”, “is expected”, “potential” and similar expressions, or statements that certain actions, events or results “could”, “could”, “will”, “could” or “will” be taken, carried out or occur, may identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-looking statements contained herein include, but are not limited to, statements regarding intended use of proceeds, over-allotment option, timing of prospectus filing and closing of offering, revitalization of ‘Eskay Creek and the results of the feasibility study. . These forward-looking statements are based on important factors and/or assumptions which include, but are not limited to, mineral resource and reserve estimates, the realization of resource and reserve estimates, metal prices, taxation, estimation, timing and amount of future exploration and development, capital and operating costs, availability of financing, obtaining regulatory approvals, environmental risks, litigation relating to securities and the assumptions set forth herein and in the Company’s MD&A for the fiscal year ended December 31, 2021, its most recent filed interim MD&A and the Company’s Annual Information Form (“AIF”) dated March 31, 2022. These forward-looking statements represent the Company’s management’s expectations, estimates and projections regarding future events or circumstances as of the date on which the statements are made, and are necessarily based on various estimates and assumptions which, although considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may differ materially from those described herein and are subject to significant operational, business, economic and regulatory risks and uncertainties. Risks and uncertainties that could affect the forward-looking statements contained in this press release include, among others: risks inherent in the exploration and development of mineral properties, including permits and other governmental approvals; changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other factors, including accidents, equipment failures, severe weather and other delays in project execution, many of which are beyond the Company’s control; environmental risks and unforeseen reclamation expenses; and other risk factors identified in the Company’s MD&A for the fiscal year ended December 31, 2021, its most recently filed interim MD&A, Annual Information Form dated March 31, 2022 and other periodic filings of the Company with securities and regulatory authorities in Canada and the United States. Statements which are available on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
Readers should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date it is made and the Company undertakes no obligation to update and/or revise any forward-looking statement, except as required by applicable securities laws. .
Cautionary Note to U.S. Investors Regarding Mineral Reserve and Mineral Resource Estimates
Skeena’s Mineral Reserves and Mineral Resources included or incorporated by reference herein have been estimated in accordance with National Instrument 43-101 Reporting Standards for Mining Projects (“NI 43-101”) as required by regulatory authorities. Canadian Securities Laws, which differ from the requirements of U.S. securities laws. The terms “mineral reserve”, “proved mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance to NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Defining Standards – For Mineral Resources and Mineral Reserves” adopted by the Council of the ICM (as amended, the “ICM Definition Standards”). These standards differ significantly from the United States Securities and Exchange Commission’s mineral property disclosure requirements in Regulation SK Subpart 1300 (the “SEC Modernization Rules”). Skeena is not currently subject to the modernization rules of the SEC. Accordingly, Skeena’s disclosure of mineralization and other technical information may differ materially from information that would have been disclosed had Skeena prepared the information in accordance with standards adopted under the SEC Modernization Rules.
Further, investors are cautioned not to assume that any or all of Skeena’s mineral resources constitute or will ever be converted into reserves. These terms involve great uncertainty as to their economic and legal feasibility. Accordingly, investors are cautioned not to assume that any “measured”, “indicated” or “inferred” mineral resources reported by Skeena are or will be economically or legally mineable. In addition, “inferred mineral resources” have great uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases where permitted under NI 43-101.
For these reasons, the mineral reserve and mineral resource estimates and related information presented herein may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under U.S. federal mineral laws. securities and the rules and regulations arising therefrom.