Skeena Resources Ltd T.SKE

Skeena Resources Announces C$64 M Bought Deal Financing

[Betteryear2]

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

 

VANCOUVER, British Columbia, May 16, 2023 (GLOBE NEWSWIRE) -- 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 BMO Capital Markets (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on bought deal basis 8,700,000 common shares of the Company (the “Common Shares”) at a price of C$7.35 per Common Share, for total gross proceeds of approximately C$64 million (the “Offering”). The Company will also grant to the Underwriters an over-allotment option (the “Over-Allotment Option”) to purchase up to 1,305,000 additional Common Shares (the “Over-Allotment Shares”). The Over-Allotment Option will be exercisable for a period of 30 days following closing.

Skeena Resources Announces C$64 Million Bought Deal (globenewswire.com)

[MrDales62]

Wow, I guess the buyers didn't have faith in the company at the higher prices? OR the company is giving it away to their friends? Either way, a slap in the face of shareholders. GL

[metalhead666]

No it isn't. There are no warrants. The offering didn't happen overnight but was planned and the price is determined by an average of what it traded at over a given time period.  It's not based on one days closing price. The stock price moved up nicely over the last few months so they raised a significant sum while the going was good so that they can advance the project.  You

[PianoMan]

if organized so much in advance then the insider selling done recently is not very ethical. And I am not talking about the shameless late reporting by Geddes. Not the first suspicious financing and it worries me for the main financing.

[metalhead666]

Don't disagree on the insider moves but Walter owns 769,000 shares....that's more than a small vote of confidence even if he sold some prior to this financing.  The fact that could do a PP for this much actually speaks quite favorably about their ability to fund the project.

[PianoMan]

«The fact that could do a PP for this much actually speaks quite favorably about their ability to fund the project.» or not, they did it on the low side of things, so it does not inspire confidence for the next deal. They will find financing with Wheaton, Banks but at what bargain price & dilution?

[metalhead666]

6 months ago they could have done it for $2 less.  You do financing when you can not when you have to and no one does it at the so called "high" side. This is what makes mining the absolute worst possible business.  You need to be convinced that gold is going higher over the next 3 years, that the mine will be built, that it will be amongst the lowest cost projects on the

[lumpy13]

The fact that Waler sold almost C$350k in shares less than 2 weeks ago, when this PP was in progress, and sold at a price 1/3 higher than the PP looks ugly.  Granted he still has a lot of shares, but still, what he did raises questions about his judgement.