Mr. Walter Coles Jr. reports
SKEENA SELLS PORTER IDAHO SILVER PROJECT
Skeena Resources Ltd. has entered into a purchase and sale agreement to sell Mount Rainey Silver Inc. to Strikepoint Gold Inc. Mount Rainey holds the company's 100-per-cent interest in the Porter Idaho property located near Stewart, B.C.
Under the terms of the agreement, and as consideration for the sale of the Mount Rainey shares, the company will receive, at closing, 9.5 million common shares of Strikepoint representing approximately 12 per cent of the outstanding shares of Strikepoint. Skeena will also receive a total of $1.5-million in cash -- $250,000 of which is payable on closing and the remaining amount payable in instalments of $250,000 to $375,000 over a period ending on Dec. 31, 2019. As security for the future cash payments, Skeena will take a pledge over all of the Mount Rainey shares. In addition, Skeena shall receive a 1-per-cent net smelter royalty on the property and Strikepoint shall have the option to buy back 0.5 per cent at a price of $750,000.
Walter Coles Jr., Skeena's chief executive officer, stated: "We are happy with the terms of the deal with Strikepoint for Porter Idaho. It divests a non-core project, which generates cash for Skeena while at the same time allowing us to participate in potential upside on the property via our new share position in Strikepoint. Porter Idaho is an exciting high-grade silver asset and we look forward to drill results from Strikepoint's soon-to-commence exploration program."
It is anticipated that closing of the transaction will take place prior to the end of July and the transaction remains subject to the acceptance of the TSX Venture Exchange.
About Skeena Resources Ltd.
Skeena Resources is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwest British Columbia, Canada. The company's primary activities are the exploration and development of the past-producing Snip mine and the recently optioned Eskay Creek mine, both acquired from Barrick. In addition, the company has completed a preliminary economic assessment on the GJ copper-gold porphyry project.
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