pcJ News Briefs – Gold Mountains Asset Management Co., Ltd., a subsidiary of Zijin Mining Group Company Limited (SHA: 601899) of China and certain clients and affiliates of the Sprott Group of Companies, has agreed to invest $6 million in Skeena Resources Limited (TSX-V: SKE) by way of a charity flow through swap of 83,333,334 flow through (FT) units at $0.072 per FT unit.
Zijin and Sprott Group will each subscribe for 41,666,667 units for a total of 83,333,334 Units.
photo credit: Skeena Resources
News Release
Skeena Announces $6 Million Strategic Investment
Vancouver, BC (October 2, 2017) Skeena Resources Limited (TSX.V: SKE) (“Skeena” or the “Company”) is pleased to announce a strategic investment from Gold Mountains Asset Management Co., Ltd., a subsidiary of Zijin Mining Group Company Limited of China (“Zijin”) and certain clients and affiliates of the Sprott Group of Companies (“Sprott Group”).
Skeena proposes to issue 83,333,334 flow through units (the “Units”) at a price of C$0.072 per Unit for gross proceeds of C$6,000,000. Each Unit will consist of one flow through common share and one half of a warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one additional common share of Skeena at a price of C$0.10 for 24 months following closing. By way of a charity flow through swap, Zijin and Sprott Group will each subscribe for 41,666,667 Units, for a total of 83,333,334 Units.
Skeena’s CEO, Walter Coles Jr. commented, “A strategic investment from two of the most sophisticated investor/operators in the precious metals sector is a strong show of confidence in the value of Skeena’s portfolio of mineral properties in northwest British Columbia. The net proceeds of the financing will be used to fund on-going exploration programs.”
Closing of the financing is subject to approval by the TSX Venture Exchange. All of the securities issued under this financing will be subject to a hold period of 4 months from the closing date of the offering. Finders’ fees may be payable to qualified finders in accordance with applicable regulations.
Skeena’s Board of Directors has also passed a resolution authorizing a 10 (old) for 1 (new) share consolidation (the “Consolidation”) in order to reduce the number of common shares outstanding. The Company will make similar adjustments to its outstanding warrants and incentive stock options. The Company currently has 644,608,495 common shares outstanding and following the Consolidation there will be 64,460,849 common shares outstanding (prior to the closing of the financing described above). There will be no name change associated with the Consolidation and it is anticipated that the Consolidation will occur immediately after closing of the financing. The Consolidation is subject to TSX Venture Exchange approval, however no shareholder approval is required.
About Skeena
Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle region of northwest British Columbia, Canada. The Company’s primary activities are the exploration and development of the past-producing Snip gold mine, acquired from Barrick Gold, and the past-producing Porter Idaho silver mine. The Company also recently announced Preliminary Economic Assessment results for the Spectrum-GJ copper-gold porphyry project.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirement is available.