Skeena Resources Ltd T.SKE

Curiouser

[templetooth2]

Less than a month ago, April 13, the co. announced final closing of a flow-through financing priced at $4.50. Gross receipts were $21.6 mm. A little over $20mm Cdn net proceeds, approximately.

The latest capex estimate was around US$230 mm. Let's guess US$275 mm factoring in inflation for steel, lumber, everything. At an exchange rate of 1.27 that's Cdn$350 million with a need for that cash starting about 10 or 11 months from now.

If you figure 1/3 equity component, there's a need for ballpark Cdn$120 mm. So again, why raise $47 million today?

[blue0987]

Skeena is looking at a good chunk of this raise ($30M) to be spent this year, depended on permitting approval, bringing the capex forward, areas already permitted such as roads & tailing facility that will need improvement can begin work this summer, along with the completion of the 240 person permanent camp started last year. A couple positives being expediting the timeline, possibly getting

[templetooth2]

I guess it's always a game simulation / trade-off decision at this point of a project's development: will the extra 16 or 19 million shares of dilution meaningfully cut into the expected final pay-off in a takeover? Would an acquirer's heart flutter at the thought of a complete camp? On the other hand, I guess it could be said that it demonstrates the ability of the company to push

[blue0987]

No one except perhaps those that are short in this stock likes dilution, and I'm certainly not happy about the share price offering, but sitting back and hoping for an early take-out that may not happen vs fast-tracking her into production, I prefer the latter. With Skeena looking to be a high margin cash cow producing between 400k-500K AuEq per/year, if in production today would generate a

[goldhunter11]

Blue, Agreed with your assessment. At least, Walter Coles (an excellent negotiator) has indicated his intention to plough ahead with the development of the mine at Eskay Creek with 100% or 40% of SNIP. So, SNIP would be part of the main mine, and it would be more economical to process SNIP ores at Eskay rather than operate SNIP as an independent operation by Rochschild (60% of SNIP, if option