Skeena completes $750 million senior secured notes offering

Skeena Resources Limited (TSX: SKE, NYSE: SKE) completed its offering of $750 million in 8.500% senior secured notes due 2031, according to a company statement. The notes are non-callable for two years and feature semi-annual interest payments.

The mining company plans to use proceeds to repurchase 66.67% of its existing $200 million gold stream for $184 million, prefund interest payments for 18 months with $94 million, and allocate approximately $470 million toward construction at its Eskay Creek project and general corporate purposes.

The financing allows Skeena to cancel its undrawn $350 million senior secured loan and $100 million cost overrun facility without penalty, as neither facility has been accessed. The company previously drew the full $200 million gold stream in 2025 to support construction activities.

Under the original gold stream terms, holders were entitled to receive 10.55% of payable gold production at 10% of market price for the life of the Eskay Creek mine. The company retained an option to repurchase up to 66.67% of the stream at an 18% internal rate of return following commercial production.

"We are proud to be the first pre-revenue mining company in more than a decade to successfully complete a public high-yield notes offering," said Walter Coles, executive chairman.

Skeena is developing the Eskay Creek gold-silver project in British Columbia's Golden Triangle, targeting initial production in the second quarter of 2027. The project is fully permitted and under construction.

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