Skeena Resources Ltd T.SKE

Financing Fiasco du jour

[templetooth2]

Sabanye-Stillwater yesterday shot itself by announcing a convertible debenture financing. Cv. into SBSW stock. Stock cratered from US$5.20 to $4.25. Recovering some today.

This isn't some obscure fluff - Sibanye has a market cap in excess of US$3 billion and was looking to raise $500 million.

I simply point this out to demonstrate how many pounds of flesh these companies have to leave on the floor if they want/need to raise money. I maintain that Skeena should try something different, namely, a US$1000 debenture convertible into half an ounce of gold. Avoid dilution. Earn accolades for innovation. Etc. The alternate path is bot-deal-bloody and everybody knows it.

[AlwaysLong683]

I maintain that Skeena should try something different, namely, a US$1000 debenture convertible into half an ounce of gold."   Temple,    1) Can you name a gold mining company that has used this strategy and achieved success with it over and above the typical equity / debt / streaming agreement mine financing strategy?    2) If it's a debenture, SKE

[templetooth2]

Alwayslong- To answer some of your points, first, no I cannot name another company that has issued a gold convertible debenture. This type of financing has not been tried in decades. Back in the 70's there were a few very small examples, but chapter-and-verse details have long since evaporated from my memory bank. Every type of financing has its good and bad aspects. With a stream, typically