Skeena closes sale of royalty on Eskay Creek

Published by Joe Toft, Editorial Assistant
Global Mining Review, Wednesday, 04 January 2023 09:00

Skeena Resources Limited has announced that the company has closed a royalty sale with Franco-Nevada Corporation pursuant to which Skeena granted a 0.5% net smelter returns royalty (NSR) on the Eskay Creek gold-silver project to Franco-Nevada in exchange for a closing cash consideration of CAN$27 million and contingent cash consideration of CAN$1.5 million. As highlighted in the company’s 26 September 2022 news release, Skeena repurchased this 0.5% NSR from Barrick Gold Corporation after it was initially granted in connection with the acquisition of Eskay Creek.

The royalty transaction was signed and closed concurrently on 30 December 2022. In connection with this transaction, Skeena terminated Franco-Nevada’s right of first refusal to purchase a 0.5% NSR on Eskay Creek, which right was granted to Franco-Nevada on 24 December 2021.

The net proceeds of the royalty transaction will be used by the company to fund ‎exploration and development activities at Eskay Creek and for general ‎administration and corporate purposes.‎

Read the article online at: https://www.globalminingreview.com/finance-business/04012023/skeena-closes-sale-of-royalty-on-eskay-creek/

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