TSX-V-listed Skeena Resources will exercise its option to acquire the Eskay Creek gold/silver project, in the Golden Triangle of north-west British Columbia, from gold major Barrick Gold.
Barrick has also agreed to waive its back-in right on Eskay Creek.
As a result of the transaction, Barrick will be a significant shareholder in Skeena, owning about 12.4%. If Barrick were to exercise the warrants, its ownership of Skeena would increase to 17.2% on a partially diluted basis and Skeena would receive cash proceeds of C$30.4-million.