Skeena Resources closes $8.09-million financing

Jun 10, 2015

SKEENA CLOSES $8.1 MILLION OF FUNDING

Skeena Resources Ltd. has closed on $8.1-million of financings. The company originally announced a $4-million offering on April 21, but due to strong institutional investor demand increased the size of the deal to $6.5-million on April 29. The company is gratified to report that financing was further increased to $8.1-million with the addition of a $1.5-million investment from Boss Power Corp.

The $8.1-million financing will primarily be dedicated toward advancing Skeena’s flagship high-grade gold project, known as Spectrum, which is located in the Golden Triangle of northwest British Columbia. The Spectrum project is in the same general vicinity of two of Ron Netolitzky’s (chairman, Skeena) past successes: the Snip and Eskay Creek mines, which are held by Barrick Gold Corp.

Skeena collected gross proceeds of $6,598,000 from the sale of 66,966,666 non-flow-through shares at six cents and 32.25 million flow-through shares at eight cents. The shares issued under this financing will be subject to a hold period of four months from the date of closing. There were no warrants included in the offering. A finder’s fee consisting of $427,840 and 1,666,666 common shares of the company will be paid or issued to finders, subject to regulatory acceptance, in connection with the closing of the private placement.

Skeena received a $1.5-million investment from Boss Power, representing an 8.7-per-cent earn-in interest in the Spectrum property, to be used exclusively for exploration activities, which qualify as Canadian exploration expenses as defined in the Income Tax Act of Canada on eligible expenditures for 2015. A joint venture agreement is under negotiation although the earned-in interest may be converted to 25 million common shares of the company, subject to exchange and regulatory approval.

Walter Coles, Skeena’s chief executive officer, commented, “We look forward to the upcoming 10,000- to 12,000-metre drill program at the Spectrum property with a goal of establishing a substantial high-grade National Instrument 43-101-compliant resource before the end of the year.” Skeena has budgeted approximately $3.5-million for the summer exploration program at Spectrum. Also, Skeena’s management team continues to evaluate other high-grade, postdiscovery resource acquisition opportunities in the Golden Triangle region of northwest British Columbia.

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