Skeena Resources (SKE.TO) on Friday said it closed an offering of US$750 million of 8.5% Senior Secured Notes.
The company said that the notes will mature in 2031 and are non-callable for the first two years.
The company, which is building the Eskay Creek mine in northern British Columbia's Golden Triangle, said proceeds of the offering will be used for a "comprehensive refinancing strategy," designed to optimize the company's capital structure by reducing its cost of capital and enhance its financial flexibility.
"Skeena has a track record of breaking new ground in the mining industry, and this transaction represents another important milestone," said executive chair Walter Coles. "We are proud to be the first pre-revenue mining company in more than a decade to successfully complete a public high-yield notes offering. The strong support for this debt issuance from leading global investment firms, including KKR and Bank of America, underscores growing confidence in our strategy, our management team, and the robustness of the Eskay Creek project as we progress toward initial production in Q2 2027."
Skeena will use the proceeds to cancel and replace of its undrawn senior secured loan of US$350 million and cost overrun facility under a gold-streaming agreement of US$100 million and the repurchase of approximately two-thirds of the US$200-million gold stream for US$187 million.
It will also prefund interest on the notes for 18 months with US$94 million deposited to an interest reserve account, equal to the first three semi-annual interest payments on the notes, and use the remaining capital of approximately US$470 million to support the remaining construction at Eskay Creek through a disbursement account, for general corporate purposes, and for expenses associated with the issuance of the notes.
The company's shares were last seen up C$0.44 to C$45.43 on the Toronto Stock Exchange.
Price: $45.43, Change: $+0.44, Percent Change: +0.98%