Skeena Resources (TSX: SKE) announced today its non-brokered private placement offering with Franco-Nevada Corporation (TSX: FNV). The offering is reportedly for total aggregate gross proceeds of approximately $30.9 million.
Through the offering, the mining firm will issue 1,471,739 flow-through shares at $21.00 per share. Net proceeds are intended to be used on funding exploration activities on its Eskay Creek gold-silver property.
In addition to the offering, Franco-Nevada is also being granted the right of first refusal in an auction for 0.5% net smelter return royalty over the Eskay Creek project. If the royalty has not been sold by October 2, 2023, Franco-Nevada has the right to purchase it for $22.5 million.
The offering is expected to close on December 23, 2021, subject to regulatory approvals.
In September 2021, the mining firm also closed a $7 million non-brokered private placement with strategic investor Ausenco Engineering Canada.
Skeena Resources last traded at $11.95 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
