Skeena Announces Repurchase of 0.5% NSR Royalty from Barrick Gold
Vancouver, BC (September 26, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena” or the “Company”) is pleased to announce that the Company has repurchased the 0.5% net smelter return (“NSR”) royalty held by Barrick Gold Inc., a subsidiary of Barrick Gold Corporation (“Barrick Gold”), on the Eskay Creek gold-silver Project (“Eskay Creek” or the “Project”) located in the Golden Triangle of British Columbia, at a cost of C$17.5M. Skeena initially granted Barrick Gold a NSR royalty of 1% over Eskay Creek in connection with the Company’s acquisition of the Project. This royalty has been reduced to a 0.5% NSR as a result of this transaction.
As referenced in the Company’s press release dated December 13, 2021, Skeena has granted to Franco-Nevada Corporation (“Franco-Nevada”) a right of first refusal (the “ROFR”) over a 0.5% NSR royalty on Eskay Creek. The ROFR granted to Franco-Nevada will be subject to a competitive auction process conducted by Skeena, in which Franco-Nevada will participate, prior to October 2, 2023. If Skeena has not sold the NSR royalty to Franco-Nevada or a third party by October 2, 2023, Franco-Nevada will have the right to purchase the royalty for C$22.5M, for a period of 30 days.
Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Feasibility Study for Eskay Creek in September 2022 which highlights an open-pit average grade of 4.00 g/t AuEq, an after-tax NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag. Skeena is currently continuing exploration drilling at Eskay Creek.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
CEO & Director
Investor Inquiries: email@example.com
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
In accordance with NI 43-101, Paul Geddes, P.Geo., Senior Vice President Exploration and Resource Development, is the Qualified Person for the Company and has reviewed and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on its projects.