Skeena Resources Limited (NYSE:SKE) fell 4.4% on Thursday after revealing a C$125 million bought deal offering to support development of its Eskay Creek gold-silver project in British Columbia.
The exploration company has partnered with a syndicate of underwriters led by BMO Capital Markets to sell 5,210,000 common shares at C$24.00 each. The underwriters also have an option to purchase up to 15% more to cover potential over-allotments within 30 days of closing.
Proceeds from the offering will be used to advance the Eskay Creek project and for general corporate purposes. The company noted that while construction continued through 2025, permitting has been delayed unexpectedly due to an ongoing strike by British Columbia government employees.
Skeena also confirmed that negotiations with the Tahltan Central Government over an Impact Benefits Agreement are moving forward, though the ratification vote remains pending the completion of talks.
“This funding provides flexibility to pursue less expensive financing alternatives compared to the existing undrawn senior secured loan facility and represents approximately 4.5% dilution to the Company’s total market capitalization,” said Walter Coles, Executive Chairman of Skeena.
The company indicated that the offering, combined with other capital sources, should provide sufficient liquidity to complete permitting, which is necessary to access the remaining portion of its previously announced US$750 million financing package with Orion Resource Partners. Skeena reported unaudited cash of roughly C$105 million as of September 30.
The offering is expected to close around October 8, 2025, subject to standard closing conditions and regulatory approvals.
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