Skeena Resources Limited (TSX: SKE, NYSE: SKE) announced plans to offer $750 million in senior secured notes due 2031 to refinance existing project financing and partially buy back its gold stream agreement.

The mining company intends to use approximately $184 million from the offering to reduce its existing $200 million gold stream by making a lump-sum payment to stream purchasers. This payment would reduce the stream percentage deliverable from production at the Eskay Creek project by 66.67%.

Skeena plans to allocate an estimated $100 million to fund an interest reserve account covering the first three semi-annual interest payments under the notes. The remaining proceeds will fund a disbursement account for advancing the Eskay Creek project, paying fees and expenses, and general corporate purposes.

The company will cancel its existing $350 million senior secured term loan and cost over-run facility concurrently with completing the offering and stream buy-down. Both facilities are currently undrawn, and Skeena does not expect cancellation fees.

The notes will be guaranteed by subsidiaries related to the Eskay Creek project and secured by first priority liens on company property, including equity interests and project interests. The offering targets qualified institutional buyers in the United States under Rule 144A and non-U.S. persons under Regulation S.

Skeena operates the Eskay Creek Gold-Silver Project in British Columbia's Golden Triangle, which is under construction with initial production targeted for the second quarter of 2027. The refinancing aims to improve future operating margins and increase exposure to gold prices, according to the company's press release.

The offering remains subject to market and other conditions, with completion of the term loan cancellation and stream buy-back contingent on successful completion of the notes offering.