Skeena Closes Strategic Investment from Franco-Nevada
Skeena Closes Strategic Investment from Franco-Nevada
Vancouver, BC ( December 24, 202 1) Skeena Resources Limited (TSX: SKE, NYSE: SKE)
(“Skeena” or the “Company”) is pleased to announce that , on December 23, 2021, it closed the
structured non-brokered private placement offering (the “Offering”) announced on December 13, 2021
with Franco-Nevada Corporation (“Franco-Nevada”).
Skeena collected gross proceeds of C$30.9 million from the sale of 1,471,739 flow through common
shares at a price of C$21.00 per share. Franco-Nevada was the end purchaser of the common shares
issued in connection with the Offering . The gross proceeds of the Offering will be used to incur
Canadian exploration expenses. All the securities issued under this Offering will be subject to a hold
period of four months and one day from the closing date of the Offering.
Concurrent with the closing of the Offering, Skeena granted to Franco -Nevada a right of first refusal
over the sale of a 0.5% net smelter return (NSR) royalty (the “Royalty”) over the Eskay Creek gold-
silver p roject (“Eskay Creek”). In addition, Skeena and Franco -Nevada have entered into an
amendment to the terms of their existing royalty agreement such that it will cover the same tenures as
are covered in the existing Barrick royalty agreement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of Skeena’s
securities in the United States. The securities have not been and will not be registered under the U.S.
Securities Act or any state securities laws and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is available.
About Skeena
Skeena Resources Limited is a Canad ian 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 Prefeasibility Study fo r
Eskay Creek in July 2021 which highlights an open -pit average grade of 4.57 g/t AuEq, an after -tax
NPV5% of C$1.4B, 56% IRR, and a 1.4 -year payback at US$1,550/oz Au. Skeena is currently
completing both infill and exploration drilling to advance Eskay Cr eek to full Feasibility Study in Q1
2022.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
President & CEO
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
NR: 21-42 | December 24, 2021
The scientific and technical information in this press release w as approved by Paul Geddes, P.Geo.,
a Qualified person as defined under National Instrument 43-101 and Vice President, Exploration and
Resource Development for the Company.
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press 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”, “es timates”,
“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 occur, may identify forward looking statements. All statements other than statem ents of
historical fact are forward -looking statements. Specific forward -looking statements contained herein include, but are not limited to,
statements regarding the Offering; the Royalty; and the timing and success of the Company’s exploration programs and drilling projects.
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 resource 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 regu latory
approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company’s Management’s Discussion and
Analysis (“MD&A”) for the nine months ended September 30, 2021 and 2020, and the Company’s Annual Information Form (“AIF”) dated
March 25, 2021. Such forward -looking statements represent the Company’s manageme nt 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 as 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 and uncertainties that may affect the forward -looking statements in this press 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 the Company; environmental risks and unanticipated reclamation expenses; and other risk factors identified in the
Company’s MD&A and AIF, 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. The Company does not undertake any obligations to
update and/or revise any forward-looking statements except as required by applicable securities laws.