Skeena Resources closes C$81M financing with Franco-Nevada

Skeena Resources has closed a financing package of C$81 million with Franco-Nevada Corporation to further develop their 100% owned Eskay Creek Gold-Silver Project located in the Golden Triangle of Northwest British Columbia. The C$81 million financing package consists of the sale of a 1.0% Net Smelter Return royalty on Eskay Creek for C$56 million and a C$25 million unsecured Convertible Debenture. With this incremental royalty purchase, Franco-Nevada now holds a 2.5% NSR on all of Skeena’s Eskay Creek properties. The Debenture will carry an interest rate of 7% and mature on the earlier of December 19, 2028, or on the completion of a Board approved project financing for Eskay Creek. The Debenture will be convertible into common shares at a conversion price of C$7.70, representing a 35% conversion premium to Skeena’s 5-day TSX volume weighted average price. No commissions or financing fees will be paid in respect of this financing and interest payments will be capitalized and deferred until maturity.