Skeena Resources Announces Flow Through Financing Hours After Closing Financing Package With Franco-Nevada
Skeena Resources (TSX: SKE) is swallowing up whatever capital it can get its hands on. The company last night revealed it would be conducting a flow through financing, less than 24 hours after securing a financing package from Franco-Nevada.
The offering posted last night consists of $10 million that is to be raised via flow through financing. The arrangement will see 1.2 million shares sold at $8.53 per each, proceeds from which will be used for further exploration in the Golden Triangle of BC.
This financing follows an $81 million financing package that it closed with Franco-Nevada that was announced Monday morning. That package saw the sale of a 1.0% net smelter return royalty for $56 million, combined with a $25 million unsecured debenture bearing interest at 7%.
READ: Skeena Resources Reports After-Tax NPV(5%) Of $2 Billion For Eskay Creek Project
The NSR issued brings Franco’s holdings in the company to a total 2.5% NSR on all of the Eskay Creek properties. The debenture meanwhile matures at the earlier of December 2028, or the completion of a financing project for Eskay Creek. The debt can convert into equity at $7.70 per share, which at the time of announcement amounted to a 35% premium.
As of September 30 Skeena reported a cash position of $38.0 million, offset by accounts payable of $31.4 million.
Skeena Resources last traded at $6.06 on the TSX.
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