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.
READ: Skeena Sees Barrick Exercise Warrants, Sell Out Of 12.9% Ownership Position Entirely
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.
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.
