Skeena closes $73.5 million bought deal for Eskay Creek

Skeena Resources (TSX: SKE; NYSE:SKE) closed its latest bought deal financing, raising approximately $73.5 million. The company offered 10.0 million common shares at a price of $7.35 each, and the underwriters fully exercised their over-allotment option.

The company says the money will be used to complete key development milestones for the Eskay Creek gold-silver project, including an onsite assay lab, earthworks, and detailed engineering. Eskay Creek is a former high-grade gold mine near Smithers, B.C. It produced 3.3 million oz. of gold and 160 million oz. of silver when it was active from 1994 to 2008.

Skeena completed the Eskay Creek feasibility study in September 2022. The project has an after-tax net present value with a 5% discount of $1.4 billion, an after-tax internal rate of return of 50%, and a one-year payback period at a gold price of US$1,700/oz.

The new open pit mine will have a life of nine years with an average annual production of 352,000 oz. gold-equivalent. The proven and probable reserves are 29.9 million tonnes grading 2.99 g/t gold and 79 g/t silver (4.00 g/t gold-equivalent). In terms of contained metal, the is 2.98 million oz. of gold and 75.5 million oz. of silver, or 3.85 million oz. gold-equivalent.

The feasibility study may be read on www.SkeenaResources.com.