Proceeds of the providing shall be directed in the direction of Skeena’s exploration actions targeted on reawakening the past-producing Eskay Creek gold-silver mine, situated within the Golden Triangle of northwest British Columbia.
Eskay Creek comprises open-pit reserves of three.88 million ounces at 4.57 g/t AuEq within the confirmed and possible class. A prefeasibility dtudy (PFS) accomplished by Skeena in July highlighted an after-tax NPV (5% low cost price) of C$1.4 billion, an IRR of 56% and a 1.4-year payback interval.
As a part of the financing, Skeena will grant to Franco-Nevada a proper of first refusal (ROFR) over the sale of a 0.5% web smelter return (NSR) royalty over the Eskay Creek mission, matching the portion of the present Barrick royalty that may be purchased again by the corporate.
The ROFR granted to Franco-Nevada shall be topic to a aggressive public sale course of carried out by Skeena, wherein Franco-Nevada will take part, previous to October 2, 2023.
If Skeena has not bought the royalty to Franco-Nevada or a 3rd get together by that date, Franco-Nevada can have the precise to buy the royalty for C$22.5 million for a interval of 30 days.
Moreover, upon closing of the providing, Skeena and Franco-Nevada will amend the phrases of their present royalty settlement such that it’ll cowl the identical tenures as are coated within the present Barrick royalty settlement.
Skeena would proceed to have the precise to purchase down a 0.5% NSR royalty (from a 1.0% NSR royalty) at the moment held by Barrick for a fee of C$17.5 million, till October 2, 2022.
Shares of Skeena Assets surged 8.4% by 12:10 p.m. in Toronto, giving the BC-focused miner a market worth of C$828.3 million.