Skeena Resources Announces C$50.0 Million Bought Deal Public Offering
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
VANCOUVER, British Columbia, May 10, 2021 (GLOBE NEWSWIRE) -- Skeena Resources Limited (TSX: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to announce that is has entered into an
agreement with a syndicate of underwriters led by Raymond James Ltd. and Canaccord Genuity Corp., under which the underwriters have agreed to buy on a bought deal basis 16,129,033 common shares
(the “Common Shares”), at a price of C$3.10 per Common Share for gross proceeds of approximately C$50.0 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at
the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to
close on or about May 17, 2021 and is subject to Skeena receiving all necessary regulatory approvals, including approval of the Toronto Stock Exchange and approval from applicable securities
The net proceeds of the Offering will be used by the Company to fund exploration and development activities at the Eskay Creek Project and Snip Gold Project and for general administration and corporate purposes.
The Common Shares will be offered by way of a prospectus supplement to be filed in all provinces of Canada, except Québec. The Common Shares may also be offered in the United States on a private placement basis pursuant to applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “1933 Act”) and applicable state securities laws, and in other jurisdictions outside of Canada and the United States provided that no prospectus filing or comparable obligation arises.
Barrick Gold Corporation, which currently holds approximately 10.8% of the issued and outstanding Common Shares, has the right to maintain its pro-rata ownership interest in the Company via participation in future Skeena financings.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.