Skeena Resources (TSX: SKE) is looking to repurchase a net smelter return royalty currently outstanding on its flagship property. To do so, the firm announced on Friday a $30 million bought deal financing to fund the purchase.
The NSR consists of just a 0.5% royalty, which can be repurchased from Barrick Gold Corp (TSX: ABX) for the sum of $17.5 million. The Eskay Creek property currently has a total 2.0% NSR outstanding.
The financing will see the firm sell just under 5.0 million common shares of the company at a price of $6.05 per each under a bought deal offering, raising gross proceeds of $30.0 million in the process. No warrants are being offered in connection with the financing.
A 15% over-allotment option is also outstanding on the financing, which is being lead by Raymond James.
In addition to the repurchase of the royalty, gross proceeds are to be used for general administration and corporate purposes. As of June 30, the firm reported a total cash position of $36.5 million.
The financing is slated to close September 22.
Skeena Resources last traded at $6.68 on the TSX.
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