Skeena Resources closes sale of royalty on Eskay Creek for C$27M

Skeena Resources (SKE) closed a royalty sale with Franco-Nevada Corporation (FNV) pursuant to which Skeena granted a 0.5% net smelter returns royalty on the Eskay Creek gold-silver Project to Franco-Nevada in exchange for a closing cash consideration of C$27M and contingent cash consideration of C$1.5M. As highlighted in the Company’s September 26, 2022 news release, Skeena repurchased this 0.5% NSR from Barrick Gold Corporation (GOLD) after it was initially granted in connection with the acquisition of Eskay Creek. The Royalty Transaction was signed and closed concurrently on December 30, 2022. In connection with this transaction, Skeena terminated Franco-Nevada’s right of first refusal to purchase a 0.5% NSR on Eskay Creek, which right was granted to Franco-Nevada on December 24, 2021. The net proceeds of the Royalty Transaction will be used by the Company to fund exploration and development activities at Eskay Creek and for general administration and corporate purposes.