Home Market News Mining <html> Skeena Strikes Gold with $60 Million Financing from Franco-Nevada for Eskay Creek

Skeena Strikes Gold with $60 Million Financing from Franco-Nevada for Eskay Creek

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  Skeena Strikes Gold with $60 Million Financing from Franco-Nevada for Eskay Creek

With the spirit of a wise old owl, Skeena chair Walter Coles declared, “In the daunting capital market jungles of Canada, we’re on a quest to shield our dear shareholders from dilution.”

He further added, “We’re blazing a trail, seeking unconventional finance routes that minimize the issuance of plain old common equity. At $2,000 an ounce, this 1% royalty will tack on about $20 to Eskay Creek’s already low all-in sustaining cost of $687 an ounce. In plain speak – we’re still reeling in substantial profits!”

The juicy details of the $60 million financing show that the debenture will flirt with an interest rate of 7% and will come of age by Dec. 19, 2028, or upon the fruition of a project financing green-lit by Eskay Creek’s board. The debenture will have the potential to morph into common shares at a conversion price of C$7.70 – a sum 35% higher than Skeena’s five-day TSX volume weighted average price.

Not to mention, Skeena dropped a bomb last month – hello, Eskay Creek’s feasibility study. Upon birthing, the project will spit out 455,000 ounces of gold every year during its first five years of operation. And when it grows up, it’s projected to boast an after-tax net present value of C$2.0 billion with a 5% discount, an internal rate of return of 43%, and the cherry on top – a slim 1.2-year payback period.