RE:RE:Plunging again Recent Events re. Financing:
ESTIMATED PRE-PRODUCTION CAPEX:
$713M CAD
(Nov 14, 2023 PR outlining results of DFS)
FUNDING SECURED TO DATE:
Financial Statements as at September 30, 2023:
Cash on Hand of $38M CAD
Dec 18, 2023 PR outlining $81M CAD financing agreement with FNV which includes:
a) $56M CAD in exchange for a 1.0% Net Smelter Return royalty on Eskay Creek, thus increasing FNV's total royalty to 2.5% on all SKE's Eskay Creek properties.
b) $25M CAD in the form of a convertible debenture @ a 7% interest rate.
Dec 27, 2023 PR outlining $10.7M CAD flow-through financing @ 8.53 per common share.
Thus, if we (for the sake of simplicity) exclude the ongoing expenses SKE is incurring on a day-by-day basis, SKE has to date secured roughly 18% ($130M) of the $713M Capex needed.
Hypothetically, if SKE were to do an equity raise that doubled their current share count (90M shares @ say $5.00 CAD to bring the total number of shares outstanding to 180M, assuming they could find private placement buyers and/or a syndicate of underwriters willing to purchase such a large number of shares at that price), it would add another $450M CAD in funding, leaving just over $130M CAD left in financing to secure to meet SKE's pre-production capex estimate.