Skeena Closes C$10.7 Million Flow-Through Financing
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Insights
The closing of Skeena Resources Limited's non-brokered private placement is a significant event, indicating a strategic move to raise capital for funding exploration activities. The issuance of flow-through shares is noteworthy, as it allows investors to transfer the tax benefits of exploration expenses to themselves, which can be an attractive incentive. The aggregate gross proceeds of approximately C$10.7 million will likely be scrutinized for their potential to enhance the company's exploration capabilities, particularly in the prolific Golden Triangle area known for its mineral wealth.
Investors will be interested in the short-term liquidity boost this capital provides, but the long-term implications are of greater significance. Successful exploration could lead to discovery, which in turn could substantially increase the value of the company. However, exploration is inherently risky and there is no guarantee of success. The final approval from the Toronto Stock Exchange will also be a critical factor in the legitimacy and execution of the placement.
From a market perspective, the announcement by Skeena Resources Limited may influence investor sentiment, particularly as it relates to the company's growth prospects and risk profile. The flow-through share mechanism is a strategic choice, often used by Canadian resource companies, to attract investment without immediately diluting share value. The average issue price of C$8.53 per share provides a benchmark for market valuation, which investors will compare against the company's performance and the outcomes of the funded exploration activities.
Additionally, the exclusion of Quebec in the offering and the adherence to the four-month hold period are details that may affect market liquidity and regional investor participation. The offering document availability on SEDAR+ and the company's website ensures transparency, which is crucial for investor trust and aligns with regulatory compliance.
The legal framework surrounding this private placement is complex, involving multiple exemptions under National Instrument 45-106. The Listed Issuer Financing Exemption and the Accredited Investor Exemption are regulatory mechanisms designed to facilitate capital raising while protecting investors. The four-month hold period for shares issued under the Accredited Investor Exemption is a standard regulatory measure to prevent immediate resale and potential market manipulation.
Moreover, the explicit statement that this press release is not an offer to sell securities in the U.S. is a compliance measure in line with the United States Securities Act of 1933. This underscores the importance of adhering to international securities law, as non-compliance could lead to significant legal repercussions and undermine investor confidence. The final approval by the Toronto Stock Exchange will be an additional legal endorsement that could affect the placement's credibility and success.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / December 27, 2023 / Skeena Resources Limited (TSX:SKE)(NYSE:SKE) ("Skeena" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Placement"). Skeena issued a total of 1,258,709 flow-through common shares of the Company, 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 subject to the final approval of the Toronto Stock Exchange. No finder's fees will be paid in connection with this Placement.
The Offered Shares have been 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 (the "AIE") under NI 45-106. Offered Shares pursuant to the AIE under NI 45-106 are subject to a four-month hold period in accordance with applicable Canadian securities laws. There is an offering document related to the Listed Issuer Financing Exemption portion of this offering that can be accessed under the Company's profile at www.sedarplus.ca and on the company's website.
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 | Randy Reichert | |
| Executive Chairman | 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 use of the net proceeds from the Offerings and the satisfaction of the conditions of closing of the Placement, including receipt of required approvals. 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 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
FAQ
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