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Skeena secures $750m for Eskay Creek project

25th June 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Dual-listed Skeena Resources on Tuesday announced a financing package totalling $750-million, equivalent to more than C$1-billion, for the development, construction and working capital required for the Eskay Creek gold and silver project, British Columbia.

The funding package with Orion Resource Partners significantly derisks the project, as the company progresses Eskay Creek towards production in the first half of 2027.

The package comprises a $100-million equity investment, a $200-million gold stream with an option to buy back up to 66.7% for a 12-month period after commercial production starts, a $350-million senior secured loan and $100-million cost overrun facility in the form of an additional gold stream.

“We designed the financing package to provide the company with important strategic flexibility and significant funding prior to final permits, while maintaining optionality as we continue working to maximize stakeholder value by advancing the project,” said executive chairperson Walter Coles.

With funding committed, Skeena is working towards finalising the 2024 early works programmes and detailed engineering plans.

In the first five years of operation, Eskay Creek will produce an average of 455 000 gold-equivalent ounces.

The project will create over 800 direct jobs and potentially 2 000 jobs for outside service and contract organisations. The project is expected to contribute roughly C$1.5-billion in direct tax revenue to British Columbia and Canada over the life of the mine.

Edited by Creamer Media Reporter

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