Skeena Resources Ltd T.SKE

RE:RE:RE:RE:RE:RE:RE:RE:Market cap drops to $300 million after hours..LOL!

[Angelique01]

metalhead666 wrote: There might have been a time limit for buying back the royalty...I don't know but will find out.  The bottom line remains...buying back the royalty saves a lot of money over the long term....some share dilution is an inevitable part of mine building.....we don't need a big equity component as the payback is 1 year...1 year and we own it...this is unheard of. focus on that. It means we can easily borrow what we need as the risk is extremely low to the lender.  While the timing and size and nature of this raise seems unusual and ill timed it's still a net benefit over time and allows for more drill holes while we go through permitting and financing.

It would have looked worse had we done an equity raise to buy back the royalty and then another flow through to fund some additional drilling.

I'll talk to the company and get their take on this....they should have included an explanation and rationale in the press release at a minimum

Doesn't change anything for me....I'll continue to build my stake in the company over time

This news release was completely expected.  There was a timeline in place.  Skeena has always had the right to buy down a .5 NSR royalty( from a 1% NSR royalty held by Barrick, for $17.5 M, until October 2 next month. As negotiated when they bought Eskay from Barrick.