Skeena Resources (TSX:SKE) to raise $40M for exploration in British Columbia

• Skeena Resources (SKE) is looking to raise up to C$40 million in a public offering to fund exploration work at its projects in British Columbia
• The company intends to issue just over 17 million common shares at a price of $2.35 each
• An over-allotment option has also been granted to the underwriters which, if exercised in full, would bring the total proceeds to $46 million
• Exploration and development work is expected to focus on the Eskay Creek and Snip projects, both of which are located in the prolific Golden Triangle region
• Skeena Resources is currently down 4.76 per cent to $2.40 per share

Skeena Resources (SKE) is looking to raise up to C$40 million to fund exploration work at its projects in British Columbia.

Under the terms of the offering, the Vancouver-based mining company intends to issue just over 17 million common shares at a price of $2.35 each.

Raymond James and Canaccord Genuity have been appointed to co-lead a syndicate of underwriters that includes Clarus Securities, Sprott Capital Partners and RBC Capital Markets.

An over-allotment option has been granted to these underwriters which, if exercised in full, would bring the total proceeds to $46 million, representing an additional 15 per cent of the offering.

Barrick Gold currently holds a 12.4 per cent stake in Skeena, and has the right to maintain its pro-rata ownership interest by participating in the financing.

While the offering remains subject to approval from the Toronto Stock Exchange, it is expected to close on or around November 17, 2020.

Skeena says the proceeds will be used to fund exploration and development work at its Eskay Creek and Snip projects, both of which are located within the prolific Golden Triangle region.

On October 27, the company published a number of promising results from a Phase One drilling campaign at Eskay Creek, including 4.48 grams per tonne of gold over 28.5 metres.

A total of 46,700 metres have been drilled since the Skeena restarted drilling in July, and Phase Two drilling is now underway with nine drill rigs currently active at the project.

Separate drilling work began at the Snip Project on October 29, utilising one drill rig engaged in a 5,000-metre resource expansion program.

Skeena Resources is currently down 4.76 per cent to $2.40 per share at 1:09pm EST.