Skeena Resources Acquires GJ Copper-Gold Project

Skeena Resources (TSXV:SKE) has acquired the GJ copper-gold property adjacent to the eastern boundary of its Spectrum project in British Columbia. Skeena has acquired the project from Teck Resources (TSX:TCK.B) and Teck’s 49 percent joint venture partner NGEx Resources (TSX:NGQ).
As quoted in the press release:

Infrastructure and access are excellent. The GJ Property is crossed by Highway 37, several forestry roads and winter trails, and a new 287kV power line connecting Red Chris mine to the provincial power grid. The property purchase includes a well-maintained winterized camp.
Under the terms of a Purchase Agreement dated October 5, 2015, which is subject to TSX Venture Exchange approval, Skeena will acquire 100% of the GJ Property, in consideration for:

• $500,000 in cash and $1.0 million worth of Skeena common shares (based on a 10- day weighted average price) on closing;
• $1.5 million worth of Skeena shares on or before the 2nd anniversary of the closing;
• $1.5 million worth of Skeena shares on or before the 5th anniversary of the closing;
• and $4.0 million cash payment on or before the date that is 45 days from commencement of commercial production from the GJ Property.

The main GJ Property claim block will be subject to a 2% net smelter return royalty (“NSR“) in favour of Teck and NGEx, of which 50% can be purchased for a $2 million cash payment. The northern part of the GJ Property is subject to a 1% NSR to Teck and NGEx of which 50% can be purchased for a $1 million cash payment. The northern GJ Property is also subject to a 1% NSR payable pursuant to a royalty agreement dated January 21, 2005, as amended, originally entered into between Canadian Gold Hunter Corp. and 650399 B.C. Ltd.
The GJ Property includes the Donnelly and North Donnelly porphyry copper-gold deposits which have a historic measured and indicated resource of 1.09 billion pounds of copper and 1.82 million ounces of gold according to a 43-101 technical report completed in April 2007 by NGEx’s predecessor and available under the NGEx profile on SEDAR (see reference below). A small amount of additional drilling was completed at Donnelly by Teck between 2011 and 2013. Skeena has commissioned the original authors to prepare an updated 43-101 resource that incorporates the Teck drilling.

Skeena president and CEO, Walter Coles, said:

The consolidation of the adjacent Spectrum and GJ properties will provide important access and infrastructure synergies that should lower unit exploration costs and provide flexibility for future development of Spectrum. Also, the GJ Property includes several high-grade gold-silver vein occurrences that are similar and complementary to the Spectrum gold project. Finally, the GJ Property acquisition provides Skeena with long term exposure to copper prices given that Teck and NGEx delineated a significant, near-surface porphyry copper-gold resource that has excellent expansion and development potential, especially for deep high-grade porphyry targets that remain untested.

Click here for the full press release.