Skeena Announces C$10 Million Flow-Through Financing
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Insights
The announcement by Skeena Resources Limited regarding a non-brokered private placement is a strategic financial move that warrants attention from investors and market analysts. The issuance of 1,223,530 flow-through common shares at an approximate price of C$8.53 per share, aggregating to C$10.4 million in gross proceeds, is significant for several reasons.
Capital Allocation: The targeted use of the net proceeds for exploration activities in British Columbia's Golden Triangle indicates a direct investment into the company's core mining operations. This may suggest confidence in the potential yield of these explorations, which could, in turn, lead to an increase in the company's resource base and future revenue streams.
Investor Sentiment: The choice of a non-brokered private placement can be viewed as a positive signal to the market, potentially indicating strong investor interest and a vote of confidence in the company's prospects. However, it also means that the offering is more exclusive, potentially limiting the opportunity for a broader investor base to participate.
Stock Liquidity and Dilution: The issuance of new shares will invariably lead to dilution of existing shareholders' stakes. However, if the exploration leads to significant discoveries, the long-term benefits could outweigh the immediate dilution effect. It's crucial for investors to monitor the outcomes of the funded exploration activities to assess the long-term impact on the stock's value.
The specifics of Skeena Resources Limited's private placement offer insights into the company's strategic direction within the mining sector. The Golden Triangle in British Columbia is known for its rich mineral deposits, making it a hotspot for mining companies. Skeena's decision to allocate the proceeds towards exploration in this region could have broader implications for the mining industry.
Industry Trends: Skeena's investment in exploration is indicative of the current trend where mining companies are aggressively seeking to expand their reserves amidst a global demand for minerals, especially those used in technology and renewable energy applications.
Environmental and Regulatory Considerations: Flow-through shares are a Canadian tax mechanism designed to incentivize investment in resource exploration by providing tax benefits to investors. This mechanism reflects the supportive regulatory environment in Canada for natural resource development, which could be a catalyst for further investments in the sector.
Competitive Landscape: The success of Skeena's exploration activities could potentially alter the competitive dynamics in the region, either by enhancing their position or by attracting more competition to the Golden Triangle. Stakeholders should monitor the exploration results closely as they could influence the company's market valuation and the region's attractiveness to investors.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / December 19, 2023 / Skeena Resources Limited (TSX:SKE, NYSE:SKE) ("Skeena" or the "Company") is pleased to announce a non-brokered private placement (the "Placement") of up to 1,223,530 flow-through common shares of the Company, to be issued at an average price of approximately C
The net proceeds of the Offering will be used to fund exploration activities on Skeena's projects in the Golden Triangle of British Columbia. The Placement is expected to close on or about December 27, 2023, subject to customary closing conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
The Offered Shares will be offered, pursuant to the Listed Issuer Financing Exemption under National Instrument (the "NI") 45-106 in all Canadian provinces and territories, except Quebec and the Accredited Investor Exemption under NI 45-106. There is an offering document related to this offering that can be accessed under the Company's profile at www.sedarplus.ca and on the company's website. Prospective investors should read this offering document before making an investment decision.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the Eskay Creek and Snip Projects, two past-producing mines located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Definitive Feasibility Study for Eskay Creek in November 2023 which highlights an after-tax NPV5% of C
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles
Executive Chairman
Randy Reichert
President & CEO
Contact Information
Investor Inquiries: info@skeenaresources.com
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively, "forward-looking statements"). These statements relate to future events or our future performance. The use of words such as "anticipates", "believes", "proposes", "contemplates", "generates", "progressing towards", "in search of", "targets", "is projected", "plans to", "is planned", "considers", "estimates", "expects", "is expected", "often", "likely", "potential" and similar expressions, or statements that certain actions, events or results "may", "might", "will", "could", or "would" be taken, achieved, or occur, may identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-looking statements contained herein include, but are not limited to, statements regarding the results of the 2023 DFS and 2022 FS, mineral processing, processing capacity of the mine, anticipated mine life, based on Proven and Probable Mineral Reserves, potential increases in Mineral Reserves and mine life, concentrate sales, estimated project capital and operating costs, potential reductions in process plant capital and operating costs, sustaining capital costs, results of test work and studies, planned environmental assessments, permit amendments and applications, GHG emissions, water treatment, the transportation of concentrates, the future price of metals, metal concentrates, and exchange rate forecasts, future exploration and development, the evaluation of mineralization, geotechnical and hydrogeological conditions and design parameters, and the timing and completion of an initial engineering study on Snip. Such forward-looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of Mineral Resources and Mineral Reserves, the realization of Mineral Resource and Mineral reserve estimates, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory and shareholder approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company's MD&A for the year ended December 31, 2022, its most recently filed interim MD&A, and the Company's Annual Information Form ("AIF") dated March 22, 2023. Such forward-looking statements represent the Company's management expectations, estimates and projections regarding future events or circumstances on the date the statements are made, and are necessarily based on several estimates and assumptions that, while considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may differ materially from those described herein, and are subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks and uncertainties that may affect the forward-looking statements in this news release include, among others: the inherent risks involved in exploration and development of mineral properties, including permitting and other government approvals; changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans, significant legal developments adversely impacting shareholder rights plan generally and other factors, including accidents, equipment breakdown, bad weather and other project execution delays, many of which are beyond the control of the Company; environmental risks and unanticipated reclamation expenses; and other risk factors identified in the Company's MD&A for the year ended December 31, 2022, its most recently filed interim MD&A, the AIF dated March 22, 2023, the Company's short form base shelf prospectus dated January 31, 2023, and in the Company's other periodic filings with securities and regulatory authorities in Canada and the United States that are available on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov.
Readers should not place undue reliance on such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and the Company does not undertake any obligations to update and/or revise any forward-looking statements except as required by applicable securities laws.
SOURCE: Skeena Resources Limited
View the original press release on accesswire.com
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