Skeena Closes Sale of Royalty on Eskay Creek for C$27 Million
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Skeena Closes Sale of Royalty on Eskay Creek for C$27 Million
Vancouver, BC (January 3, 2023) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena”
or the “Company”) is pleased to announce that the Company has closed a royalty sale (the “Royalty
Transaction”) with Franco-Nevada Corporation (“Franco-Nevada”) pursuant to which Skeena granted
a 0.5% net smelter returns royalty (“NSR”) on the Eskay Creek gold-silver Project (“Eskay Creek” or
the “Project”) to Franco-Nevada in exchange for a closing cash consideration of C$27 million and
contingent cash consideration of C$1.5 million. As highlighted in the Company’s September 26, 2022
news release, Skeena repurchased this 0.5% NSR from Barrick Gold Corporation after it was initially
granted in connection with the acquisition of Eskay Creek.
The Royalty Transaction was signed and closed concurrently on December 30, 2022. In connection
with this transaction, Skeena terminated Franco -Nevada’s right of first refusal to purchase a 0.5%
NSR on Eskay Creek, which right was granted to Franco-Nevada on December 24, 2021.
The net proceeds of the Royalty Transaction will be used by the Compa ny to fund exploration and
development activities at Eskay Creek and for general administration and corporate purposes.
About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on
revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden
Triangle of northwest British Columbia, Canada. The Company released a Feasibility Study for Eskay
Creek in September 2022 which highlights an open -pit average grade of 4.00 g/t AuEq, an after-tax
NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag. Skeena is
currently continuing exploration drilling at Eskay Creek.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr. Randy Reichert
Executive Chairman President & CEO
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this news release constitute “forward-looking
information” and “forward -looking statements” within the meaning of applicable Canadian and United States securities
legislation (collectively, “forward-looking statements”). These statements relate to future events or our future performance.
The use of words such as “anticipates”, “believes”, “proposes”, “contemplates”, “generates” , “targets”, “is projected”, “is
planned”, “considers”, “estimates”, “expects”, “is expected”, “potential” and similar expressions, or statements that certain
actions, events or results “may”, “might”, “will”, “could”, or “would” be taken, achieved, or occ ur, may identify forward -
NR: 23-01 | January 3, 2023
looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-
looking statements contained herein include, but are not limited to, statements regarding the results of the Feasibility
Study, processing capacity of the mine, anticipated mine life, probable reserves, estimated project capital and operating
costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of met als,
metal concentrate, and future exploration and development. Such forward -looking statements are based on material
factors and/or assumptions which include, but are not limited to, the estimation of mineral resources and reserves, the
realization of res ource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future
exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals,
environmental risks, title disput es and the assumptions set forth herein and in the Company’s MD&A for the year ended
December 31, 2021, its most recently filed interim MD&A, and the Company’s Annual Information Form (“AIF”) dated
March 31, 2022. Such forward -looking statements represent the Company’s management expectations, estimates and
projections regarding future events or circumstances on the date the statements are made, and are necessarily based on
several estimates and assumptions that, while considered reasonable by the Company a s of the date hereof, are not
guarantees of future performance. Actual events and results may differ materially from those described herein, and are
subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks a nd uncertainties
that may affect the forward -looking statements in this news release include, among others: the inherent risks involved in
exploration and development of mineral properties, including permitting and other government approvals; changes in
economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other
factors, including accidents, equipment breakdown, bad weather and other project execution delays, many of which are
beyond the control of th e Company; environmental risks and unanticipated reclamation expenses; and other risk factors
identified in the Company’s MD&A for the year ended December 31, 2021, its most recently filed interim MD&A, the AIF
dated March 31, 2022, the base shelf prospectus dated November 11, 2020, the prospectus supplement to the Company’s
base shelf prospectus dated September 20, 2022 and in the Company’s other periodic filings with securities and regulatory
authorities in Canada and the United States that are available on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov.
Readers should not place undue reliance on such forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made and the Company does not undertake any obligations to update and/or revise any
forward- looking statements except as required by applicable securities laws.