Skeena Closes Transaction to Acquire 100% of Eskay Creek

Rhea-AI Summary

Skeena Resources Limited has successfully finalized its acquisition of the Eskay Creek gold-silver project from Barrick Gold Corporation. As part of this transaction, Barrick received 22.5 million common shares and warrants for an additional 11.25 million shares, resulting in Barrick owning 12.4% of Skeena’s outstanding shares. Skeena is focusing on advancing this project, located in the Golden Triangle of British Columbia, through infill and exploration drilling towards a Prefeasibility stage.

Positive

• Acquisition of 100% of Eskay Creek enhances Skeena's asset portfolio.
• Strategic positioning in the Golden Triangle may lead to future revenue growth.

Negative

• Issuance of 22.5 million shares could dilute existing shareholders' equity.

VANCOUVER, BC / ACCESSWIRE / October 5, 2020 / Skeena Resources Limited (TSX:SKE)(OTCQX:SKREF) ("Skeena" or the "Company") is pleased to announce that it has closed the previously announced transaction with Barrick Gold Corporation's wholly-owned subsidiary, Barrick Gold Inc. ("Barrick"). Skeena now owns 100% of the Eskay Creek gold-silver project ("Eskay Creek") located in the Golden Triangle of northwest British Columbia, Canada.

At closing, Barrick was issued units of Skeena comprised of an aggregate: (i) 22.5 million common shares of Skeena; and (ii) warrants representing the right to acquire an additional 11.25 million common shares of Skeena. On the closing of the transaction, as at today, Barrick holds a total of 24,075,000 common shares of Skeena, or 12.4% of Skeena's currently issued and outstanding common shares.

For further details regarding the transaction, please refer to the Company's press releases dated August 4, 2020 and July 6, 2020.

About Skeena
Skeena Resources Limited is a junior mining company focused on developing 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 robust Preliminary Economic Assessment in late 2019 and is currently focused on infill and exploration drilling at Eskay Creek to advance the project to Prefeasibility. Skeena is also exploring the past-producing Snip gold mine.

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

Walter Coles Jr.
President & CEO

Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, 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 other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

CONTACT:
Walt Coles Jr.
President & CEO

Kelly Earle
Vice President Communications
Email: kearle@skeenaresources.com
Tel: (604) 684-8725

SOURCE: Skeena Resources Limited

View source version on accesswire.com:
https://www.accesswire.com/608978/Skeena-Closes-Transaction-to-Acquire-100-of-Eskay-Creek

FAQ

What is the significance of the Eskay Creek acquisition for SKREF?

The acquisition allows SKREF to fully control a valuable gold-silver project, potentially increasing its market value.

When was the transaction between Skeena and Barrick completed?

The transaction was completed on October 5, 2020.

How many shares did Barrick Gold receive in the Skeena transaction?

Barrick Gold received a total of 22.5 million common shares and warrants for an additional 11.25 million shares.

What percentage of Skeena does Barrick own after the transaction?

After the transaction, Barrick owns 12.4% of Skeena's currently issued and outstanding common shares.

What are Skeena's future plans for Eskay Creek post-acquisition?

Skeena plans to focus on infill and exploration drilling to advance the project to a Prefeasibility stage.