RE:RE:Off Topic BUT?No use discussing who did what or why the deal is done and like David Erflie of Mining Junky said Matty is a fibber.
This is Sprotts outlook on the SKE deal. A no brainer to bad some of the Marathon Directors did'nt have a little more creative imagination. In the long run we may have seen a more interesting deal being this close to the finish line. I wonder who will be the one director appointed to the CBX board?
Can we guess?
READ BELOW SKE.
The 0.25xNAV the stock trades at equates to a ~30% cost of equity, making today’s deal very accretive compared to dilutive equity. With the raise to ostensibly fund up to $500m of pre-permit spend planned, this allows Skeena to continue operational momentum through permitting, with the CY28 long-stop date of a convertible talking to a useful buffer against the CY26 target production date.
In real-world terms, the DFS 4.1g/t AuEq reserve grade effectively drops 0.04g/t (1% royalty) in exchange for not ‘giving away’ ~10% of the company in equity dilution, a no-brainer from our point of view.
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Marathon gave away the whole kit and caboodle as a Christmas gift with a no ways out clause. Nice to have partners that see eye to eye.