Off Topic BUT?Franco Nevada just made an offer to finance Skeena, Too Bad Manson did not do the same. The C$81 million financing package consists of the sale of a 1.0% Net Smelter Return (“NSR”) royalty on Eskay Creek for C$56 million and a C$25 million unsecured Convertible Debenture (the “Debenture”). With this incremental royalty purchase, Franco-Nevada now holds a 2.5% NSR on all of Skeena’s Eskay Creek properties.
Walter Coles, Skeena’s Executive Chairman, commented “Securing funding for the advancement of Eskay Creek to production is critical for Skeena. As a management team and shareholders ourselves, we are striving to minimize shareholder dilution in what is currently an extremely difficult capital markets environment for mine developers in Canada. To achieve this, we are pursuing less conventional financing pathways that limit the issuance of straight common equity. At US$2,000/oz gold, this 1% royalty will add about US$20 to Eskay Creek’s very low All In Sustaining Cost of US$687/oz, which implies that Skeena will still maintain a very substantial profit margin.”