Skeena Announces Proceeds of C$30.4 Million from Warrant Exercise

Rhea-AI Summary

Skeena Resources Limited (TSX:SKE, NYSE:SKE) has successfully raised approximately C$30.4 million through the exercise of 2,812,500 warrants held by Barrick Gold Corporation. The warrants were issued at an exercise price of C$10.80. The funds will support an extensive 60,000-meter exploration drilling program set for Eskay Creek in 2022, which aims to enhance the existing mine plan and explore new mineral zones. Skeena is focused on advancing the Eskay Creek site towards a full Feasibility Study.

Positive

• Raised C$30.4 million from warrant exercise.
• Funding allocated for 60,000 meters of exploration drilling.
• Expansion of mining plans through exploration of new mineral zones.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / March 24, 2022 / Skeena Resources Limited (TSX:SKE)(NYSE:SKE) ("Skeena" or the "Company") is pleased to announce that the Company has received approximately C$30.4 million from the exercise of 2,812,500 warrants (the "Warrants") held by Barrick Gold Corporation ("Barrick"). The Warrants were originally issued to Barrick with an exercise price of C$10.80 on October 5, 2020 in connection with Skeena acquiring 100% of the Eskay Creek gold-silver project ("Eskay Creek" or the "Project") located in the Golden Triangle of British Columbia, Canada.

Proceeds from the exercise of these Warrants will be used by the Company to fund 60,000 metres of exploration drilling planned for Eskay Creek in 2022. A skid-based drilling program is expected to commence on the Project in April, followed by a helicopter supported drilling program consisting of eight diamond drill rigs in June. The fully funded exploration program will focus on supplementing the existing mine plan with additional near surface mineralization amenable to open-pit mining methods and will be paralleled by exploratory drill testing of the deep Mudstone extensions north of the former Eskay Creek mine. Allocation of meterage will remain results driven. Expansion and delineation drilling will also occur in the new 21A West Zone as well as the recently discovered 23 Zone.

About Skeena

Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Prefeasibility Study for Eskay Creek in July 2021 which highlights an open-pit average grade of 4.57 g/t AuEq, an after-tax NPV5% of C$1.4B, 56% IRR, and a 1.4-year payback at US$1,550/oz Au. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to a full Feasibility Study in 2022.

On behalf of the Board of Directors of Skeena Resources Limited,

Walter Coles Jr.
President & CEO

Contact Information
Investor Inquiries: info@skeenaresources.com
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com

Qualified Persons

Exploration activities at the Eskay Creek Project are administered on site by the Company's Exploration Managers, Raegan Markel, P.Geo., John Tyler and Director of Exploration, Adrian Newton P.Geo. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration and Resource Development, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on its projects.

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", "targets", "is projected", "is planned", "considers", "estimates", "expects", "is expected", "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 PFS, completion of a feasibility study, processing capacity of the mine, anticipated mine life, probable reserves, estimated project capital and operating costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of metals, metal concentrate, and future exploration and development. 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 reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company's Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2020, and the Company's Annual Information Form ("AIF") dated March 25, 2021. 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 press 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 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 2020 MD&A and AIF, 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.sedar.com or on EDGAR at www.sec.gov.

Readers should not place undue reliance on such forward-looking statements. 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 source version on accesswire.com:
https://www.accesswire.com/694438/Skeena-Announces-Proceeds-of-C304-Million-from-Warrant-Exercise

FAQ

What is the amount raised by Skeena Resources from the warrant exercise?

Skeena Resources raised approximately C$30.4 million from the exercise of 2,812,500 warrants.

What is the purpose of the C$30.4 million raised by Skeena Resources?

The funds will be used to finance a 60,000-meter exploration drilling program at the Eskay Creek project.

When will the exploration drilling at Eskay Creek start?

The skid-based drilling program is expected to begin in April 2022, followed by helicopter-supported drilling in June.

Who exercised the warrants for Skeena Resources?

The warrants were exercised by Barrick Gold Corporation.

What is the exercise price of the warrants exercised by Barrick?

The warrants were exercised at an exercise price of C$10.80.