Skeena Resources' Strategic Financing: A Path to Growth and Diversification

Skeena Resources Limited (TSX:SKE)(NYSE:SKE) has announced the filing of the final prospectus supplement in respect of its approximately C$70.5 million bought deal financing. This strategic capital raise aligns with the company's long-term growth plans and positions it to accelerate development during favorable market conditions. The financing, led by BMO Capital Markets, reflects strong institutional confidence in Skeena's fundamentals and growth prospects.

The C$70.5 million bought deal financing will be used for the continued advancement of the Eskay Creek gold-silver project and for general corporate purposes. The offering, expected to close on or about February 26, 2025, is subject to customary closing conditions, including regulatory approvals and listing on the Toronto Stock Exchange and New York Stock Exchange.

The financing structure includes an option for underwriters to increase the aggregate number of common shares purchased by 15% up to 48 hours prior to closing. Additionally, underwriters may elect to have up to 2,230,000 common shares issuable under the offering to be issued as "flow-through shares" at a price of C$17.93 per share, potentially increasing the aggregate gross proceeds to approximately C$78 million.

The involvement of BMO Capital Markets as the lead underwriter is significant, as tier-one investment banks typically only lead deals they are confident will succeed. The bought deal structure, where underwriters assume the full risk of placement, demonstrates strong institutional confidence in Skeena's fundamentals. The premium pricing and strong demand for flow-through shares further validate the market's positive view of Skeena's prospects.

While the financing will result in approximately 4.2% dilution (excluding options), the premium pricing and strong institutional backing indicate the market views this capital raise positively. The timing aligns with the broader precious metals sector momentum, potentially positioning Skeena to accelerate its development plans during favorable market conditions.



In conclusion, Skeena Resources' C$70.5 million bought deal financing represents a strategic capital raise that aligns with the company's long-term growth plans. The financing, led by BMO Capital Markets, reflects strong institutional confidence in Skeena's fundamentals and growth prospects. The premium pricing and strong demand for flow-through shares indicate a positive market view of Skeena's prospects, positioning the company to accelerate its development plans during favorable market conditions.