{"id":1194094,"date":"2020-07-06T14:34:53","date_gmt":"2020-07-06T19:34:53","guid":{"rendered":"https:\/\/resourceworld.com\/?p=58753"},"modified":"2020-07-06T14:34:53","modified_gmt":"2020-07-06T19:34:53","slug":"skeena-resources-to-acquire-100-of-eskay-creek","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1194094","title":{"rendered":"Skeena Resources to acquire 100% of Eskay Creek"},"content":{"rendered":"

Skeena Resources Ltd.<\/strong> [SKE<\/a>-TSXV; SKREF<\/a>-OTCQX] signed a binding term sheet with Barrick Gold Corp.<\/strong>‘s [ABX-TSX; GOLD-NYSE] wholly owned subsidiary, Barrick Gold Inc., defining the terms under which Skeena will exercise its option to acquire 100% of the Eskay Creek gold-silver project located in the Golden Triangle of northwest British Columbia. In addition, Barrick has agreed to waive its back-in right on Eskay Creek. As a result of this transaction, Barrick will become a significant shareholder in Skeena.<\/p>\n

Skeena’s CEO, Walter Coles Jr., said, \u201cSkeena is honoured to have Barrick as a significant shareholder as we endeavour to revitalize Eskay Creek, the former highest-grade, past-producing gold mine in the world. Skeena has almost C$50 million cash and we continue to believe there are opportunities to increase the grade and size of this project with exploration drilling.\u201d<\/p>\n

Skeena will acquire a 100% ownership in Eskay Creek in consideration for issuing Barrick 22.5 million units, with each unit comprised of one Skeena share and a non-transferrable half warrant. Exercise price of the full warrant of C$2.70 is approximately a 60% premium to the 20-day VWAP and a 35% premium to the closing price of the shares on July 3, 2020.<\/p>\n

Consideration includes granting Barrick a 1% NSR royalty on the entire Eskay Creek land package. Half of that royalty may be repurchased from Barrick during the 24-month period after closing, at a cost of C$17.5 million and a contingent payment, payable if Skeena sells more than a 50% interest in Eskay Creek during the 24-month period after closing, of C$15 million.<\/p>\n

It is expected Barrick will own about 12.4% of Skeena’s shares after closing, including existing shares held. 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. Barrick will have a right to appoint a director to the Skeena board. Closing of the transaction is expected in Q4 2020, subject to approvals.<\/p>\n

On July 6, Skeena shares gained $0.26 to $2.25 on a volume of 1,905,100 shares traded.<\/p>\n","protected":false},"excerpt":{"rendered":"

Skeena Resources Ltd. [SKE-TSXV; SKREF-OTCQX] signed a binding term sheet with Barrick Gold Corp.‘s [ABX-TSX;…<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[22,48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1194094"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1194094"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1194094\/revisions"}],"predecessor-version":[{"id":1194095,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1194094\/revisions\/1194095"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1194094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1194094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1194094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}