“As a management team and shareholders ourselves, we are striving to minimize shareholder dilution in what is currently an extremely difficult capital markets environment for mine developers in Canada” said Skeena chair Walter Coles.
“To achieve this, we are pursuing less conventional financing pathways that limit the issuance of straight common equity. At $2,000/oz. gold, this 1% royalty will add about $20 to Eskay Creek’s very low all-In sustaining cost of $687/oz., which implies that Skeena will still maintain a very substantial profit margin.”
The debenture will carry an interest rate of 7% and mature on the earlier of Dec. 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 five-day TSX volume weighted average price.
Last month Skeena released the…
