Mr. Walt Coles Jr. reports
SKEENA ANNOUNCES $6.0 MILLION PRIVATE PLACEMENT FINANCING
Skeena Resources Ltd. has entered into an agreement with a syndicate of agents co-led by PI Financial Corp. and Sprott Capital Partners in connection with a marketed best efforts private placement of up to five million units and up to 4,285,715 flow-through common shares of the company to raise aggregate gross proceeds of up to approximately $6.0-million.
The units will be offered by way of a best efforts private placement at a price of 60 cents per unit. Each unit shall consist of one common share of the company and one-half of one transferable non-flow-through common share purchase warrant. Each warrant shall be exercisable into one additional non-flow-through common share of the company for a period of two years from the closing of the offering at an exercise price of 90 cents. The FT shares will be offered by way of a best efforts private placement at a price of 70 cents per FT share.
In addition, the company has granted the agents an option, exercisable in whole or in part at any time up to two days prior to closing of the offering, to offer an additional number of units representing 15 per cent of the offering, on the same terms as the units.
The company will pay a cash commission of 6.0 per cent of the gross proceeds of the offering, other than in respect of certain purchasers on a president's list, in which case the cash fee shall be equal to 2.0 per cent. In addition, subject to regulatory approval, the company will issue to the agents compensation warrants entitling the agents to purchase, at a price of 70 cents each, that number of common shares equal to 6.0 per cent of the aggregate number of units and FT shares issued by the company under the offering for a period of 12 months from the closing of the offering, other than in respect of units or FT shares issued to certain purchasers on the president's list, in which case the number of compensation warrants issued in respect of such issuance shall be equal to 2.0 per cent.
The net proceeds of the offering will be used to finance advancement of the company's Snip project and the recently optioned Eskay Creek project and for working capital purposes.The closing of the offering is anticipated to occur on or around April 4, 2018, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange. All securities issued under the offering will be subject to a statutory hold period in Canada expiring four months and one day from the closing date.
About SkeenaResources 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 is performing preliminary exploration on the past-producing Porter Idaho silver mine and has completed a preliminary economic assessment on the Spectrum-GJ copper-gold porphyry project.
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