Skeena Resources Closes $8.1 Million Funding

Skeena Resources (TSXV:SKE) closed $8.1 million of funding on Tuesday, following the increase of an offering initially announced on April 21st. The original offering was set to raise $4 million, but the offering increased to $6.5 million and then to $8.1 million with a $1.5 million investment from Boss Power (TSXV:BPU).

As quoted in the press release:

The $8.1 million of funding will primarily be dedicated toward advancing Skeena’s flagship high-grade gold project, known as Spectrum, which is located in the Golden Triangle of northwest British Columbia. The Spectrum project is in the same general vicinity of two of Ron Netolitzky’s (Chairman, Skeena) past successes: the Snip and Eskay Creek mines, which are held by Barrick Gold Corporation.

Skeena collected gross proceeds of $6,598,000 from the sale of 66,966,666 Non-Flow Through shares at 6 cents and 32,250,000 Flow Through shares at 8 cents. The shares issued under this financing will be subject to a hold period of four months from the date of closing. There were no warrants included in the offering. A finder’s fee consisting of $427,840 and 1,666,666 common shares of the Company will be paid or issued to finders, subject to regulatory acceptance, in connection with the closing of the private placement.

Skeena received a $1.5 million investment from Boss Power Corp., representing an 8.7% earn-in interest in the Spectrum property, to be used exclusively for exploration activities, which qualify as CEE as defined in the Income Tax Act of Canada on eligible expenditures for 2015. A joint venture agreement is under negotiation although the earned-in interest may be converted to 25,000,000 common shares of the Company, subject to Exchange and regulatory approval.

Skeena Resources CEO, Walter Coles, said:

We look forward to the upcoming 10,000-12,000 metre drill program at the Spectrum property with a goal of establishing a substantial high grade NI 43-101 compliant resource before the end of the year.

Click here to read the Skeena Resources (TSXV:SKE) press release