Skeena Resources Limited, trading on TSX and NYSE as SKE, completed a C$81 million financing deal with Franco-Nevada Corporation for the development of their Eskay Creek Gold-Silver Project in Northwest British Columbia. This package included a C$56 million sale of a 1.0% Net Smelter Return (NSR) royalty on Eskay Creek, increasing Franco-Nevada’s total NSR on the property to 2.5%, and a C$25 million unsecured Convertible Debenture.

Executive Chairman Walter Coles stated that this funding is crucial for advancing Eskay Creek to production, particularly in the challenging capital market environment for Canadian mine developers. The company aims to reduce shareholder dilution by choosing unconventional financing methods over issuing common equity. Coles noted that even with a gold price of US$2,000/oz, the 1% royalty would only add about US$20 to Eskay Creek’s low sustaining cost of US$687/oz, preserving a substantial profit margin.

The Debenture has a 7% interest rate, maturing on the earlier of December 19, 2028, or upon completion of a Board approved project financing for Eskay Creek. It is convertible into common shares at C$7.70, a 35% premium over Skeena's 5-day TSX average price. Notably, the transaction involved no commissions or financing fees, with interest payments being capitalized and deferred until maturity.