Skeena Resources Announces C$30 Million Bought Deal Financing
Skeena Resources Announces C$30 Million Bought Deal Financing
Vancouver, BC (September 16, 2022) Skeena Resources Limited (TSX: SKE; NYSE: SKE)
(“Skeena” or the “Company”) announced today that it has entered into an agreement with a
syndicate of underwriters led by Raymond James Ltd. (the “Underwriters”), pursuant to which the
Underwriters have agreed to purchase, on a bought deal basis, 4,958,678 common shares of the
Company (the “Common Shares”) at a price of C$6.05 per Common Share, for total gross
proceeds of approximately C$30 million (the “Offering”). The Company will also grant to the
Underwriters an over-allotment option (the “Over -Allotment Option”) to purchase up to 743,801
additional Common Shares (the “Over -Allotment Shares”). The Over -Allotment Option will be
exercisable for a period of 30 days following closing.
The Common Shares will be offered by way of a prospectus supplement (th e “Supplement”) to
the Company’s base shelf prospectus in all of the provinces of Canada, except the province of
Québec. The Supplement will also be filed with the U.S. Securities and Exchange Commission
(the “SEC”) as part of the Company’s registration statement on Form F-10 (File No. 333-267434)
in the United States under the multi-jurisdictional disclosure system adopted by the United States
and Canada. Such documents contain important information about the Offering.
The net proceeds of the Offering will be used by the Company to exercise their right (subject to
the terms and conditions of the Company’s buy -back rights) to buy down a 0.5% NSR royalty
currently held by Barrick Gold Corporation, for a payment of C$17.5mm, as well as general
administration and corporate purposes.
The Offering is expected to close on or about September 22, 2022, subject to customary closing
conditions including, but not limited to, the receipt of all necessary approvals including the
approval of the Toronto Stock Exchange and the New York Stock Exchange and the applicable
securities regulatory authorities.
The Company has filed a registration statement on Form F -10 with the SEC for the Offering to
which this communication relates. Before you invest, you should read the registration statement
and other documents the Company has filed with the SEC, and the Supplement, when available,
for more complete information about the Company and this Offering. You may get these
documents for f ree by visiting EDGAR on the SEC website at www.sec.gov or on the SEDAR
website at www.sedar.com. Alternatively, the Company, any Underwriter or any dealer
participating in the Offering will arrange to send you the Supplement or you may request it from
the Corporate Secretary of Skeena Resources Limited. at Suite 650, 1021 West Hastings St,
Vancouver, BC, V6E 0C3 Canada telephone (604) 684-8725.
No securities regulatory authority has either approved or disapproved of the contents of this news
release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of these securities in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the registration or qualification under the
securities laws of any such province, state or jurisdiction.
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
NR: 22-19 | September 16, 2022
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.
CEO & Director
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Qualified Persons
In accordance with NI 43 -101, Paul Geddes, P.Geo., Senior Vice President Exploration and
Resource Development, is the Qualified Person for the Company and has reviewed and approved
the technical and scientific content of this news release. The Company strictly adheres to CIM
Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on
its projects.
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 a pplicable 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 occur,
may identify forward -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 intended use of proceeds, over -allotment option, timing with respect to the filing of the prospectus and closing of
the Offering, revitalization of Eskay Creek and results of the Feasibility Study. 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
regulatory approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company’s
MD&A for the year ended December 31, 2021, its most recently fil ed 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 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
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, i ncluding 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 for the year
ended December 31, 2021, its most recently filed interim MD&A, the AIF dated March 31, 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 Company does not undertake any obligations to update and/or revise any
forward-looking statements except as required by applicable securities laws.
Cautionary note to U.S. Investors concerning estimates of mineral reserves and mineral resources
Skeena’s mineral reserves and mineral resources included or incorporated by reference herein have been estimated
in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required
by Canadian se curities regulatory authorities, which differ from the requirements of U.S. securities laws. The terms
“mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral
resource”, “indicated mineral resource” an d “inferred mineral resource” are Canadian mining terms as defined in
accordance with NI 43 -101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Definition
Standards – For Mineral Resources and Mineral Reserves” adopted by the CI M Council (as amended, the “CIM
Definition Standards”). These standards differ significantly from the mineral property disclosure requirements of the
U.S. Securities and Exchange Commission in Regulation S-K Subpart 1300 (the “SEC Modernization Rules”). Skeena
is not currently subject to the SEC Modernization Rules. Accordingly, Skeena’s disclosure of mineralization and other
technical information may differ significantly from the information that would be disclosed had Skeena prepared the
information under the standards adopted under the SEC Modernization Rules.
In addition, investors are cautioned not to assume that any part or all of Skeena’s mineral resources constitute or will
be converted into reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility.
Accordingly, investors are cautioned not to assume that any “measured”, “indicated”, or “inferred” mineral resources
that Skeena reports are or will be economically or legally mineable. Further, “inferred minera l resources” have a great
amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under
Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or prefeasibility
studies, except in rare cases where permitted under NI 43-101.
For these reasons, the mineral reserve and mineral resource estimates and related information presented herein may
not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure
requirements under the U.S. federal securities laws and the rules and regulations thereunder.