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Skeena Resources Ltd T.SKE

Alternate Symbol(s):  SKE

Skeena Resources Limited is a precious metals developer that is focused on advancing the Eskay Creek Gold-Silver Project, a past producing mine located in the Golden Triangle in British Columbia, Canada. Eskay Creek represents one of the highest-grade and lowest cost open-pit precious metals mines in the world, with substantial silver by-product production. It also owns the past-producing Snip gold mine (Snip). In addition to Eskay Creek and Snip, the Company also owns several exploration stage mineral properties in the Golden Triangle and Liard Mining Division of British Columbia. Its 100%-owned Eskay Creek Project is a high-grade volcanogenic massive sulphide (VMS) deposit. The Snip mine consists of one mining lease and eight mineral claims totaling approximately 4,546 hectares (ha) in the Liard Mining Division. It has staked a 74,633-ha Hoodoo Project, located approximately 65 kilometers northwest of Eskay Creek. It also has interests in KSP property.


TSX:SKE - Post by User

Post by lumpy13on Aug 28, 2024 12:54pm
234 Views
Post# 36199643

Great interview by Walter, especially on financing package

Great interview by Walter, especially on financing packageWorth watching.  Walter does an excellent job explaining why SKE put together their financing package the way they did and, more importantly, the flexibility they have in case they want to buy back 2/3 of their streaming deal (18% IRR) and/or get acquired. Hits the head on the nail explaining why financing for juniors is so horrible the past few years and why they did the full deal with Orion. Financing package also includes overrun funding.

They are now fully funded, should be able to start construction at next round of permits (expected in month or two), as they'll be able to draw on the $100m of new equity and $200m stream and, after getting the environmental permits in roughly a year, can draw on the Orion debt (not cheap at 13% currently), with production expected in mid/late '26.

Reading between the lines, Walter is hoping to be acquired and the deal is such to make it attractive for a buyer.  Also notes, that silver (which wasn't streamed) will be 30% of the revenues and is especially excited about the upside potential.

https://www.youtube.com/watch?v=MbBEbCrYOT8
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