- Skeena Resources Limited (SKE) has closed a $28.5 million royalty sale agreement with Franco-Nevada Corporation
- Skeena granted a 0.50 per cent net smelter return royalty on the Eskay Creek Project to Franco-Nevada
- The agreement included a closing cash consideration of $27 million and contingent cash consideration of $1.5 million
- The proceeds will fund exploration and development activities at Eskay Creek and for general administration and corporate purposes
- Skeena Resources Limited (SKE) is up 4.85 per cent and is trading at $7.56 per share as of 11:44 a.m. EST
Skeena Resources Limited (SKE) has closed a $28.5 million royalty sale agreement.
Under the agreement, Skeena has granted a 0.50 per cent net smelter return royalty on the Eskay Creek Project to Franco-Nevada Corporation.
The agreement included a closing cash consideration of $27 million and contingent cash consideration of $1.5 million.
The agreement was signed and closed on December 30th. In connection with this transaction, Skeena terminated Franco-Nevada’s right of first refusal to purchase Eskay Creek, which was granted to Franco-Nevada on December 24th.
Skeena repurchased this 0.50 per cent royalty from Barrick Gold Corporation after it was initially granted in connection with the acquisition of Eskay Creek.
The net proceeds of the transaction will be used by Skeena Resources to fund exploration and development activities at Eskay Creek and for general administration and corporate purposes.
Skeena Resources is a Canadian mining exploration, and development company focused on re-establishing the past-producing Eskay Creek gold-silver mine in the Golden Triangle of northwest British Columbia. The company released a feasibility study for the project in September, which highlighted an after-tax net present value of $1.4 billion.
Skeena Resources Limited (SKE) is up 4.85 per cent and is trading at $7.56 per share as of 11:44 a.m. EST.