Mining company Skeena Resources has received a $750m (A$1.12bn) funding package from Orion Resource Partners.
This financing will support the development, construction and general working capital needed to support its Eskay Creek Gold-Silver Project in British Columbia, Canada.
It includes a $100m (C$136.72m) equity investment, a $200m gold stream with a buyback option of up to 66.7% within 12 months of commercial production, a $350m senior secured loan, and a $100m cost overrun facility provided as an additional gold stream.
This funding package is said to significantly reduce the project’s risks and grant Skeena “optionality, flexibility and stakeholder alignment” as it advances Eskay towards production by the first half of 2027.
The package provides a substantial portion of financing prior to Skeena obtaining the necessary permits for the Eskay project. This enables the company to advance the project expeditiously towards production.
With project financing secured, Skeena is currently finalising the 2024 early works programme and detailed engineering plans.
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Advancing with the early works programme is expected to ease timing pressures for Skeena as it progresses through the environmental assessment and permitting process.
The project will generate more than 800 direct jobs and potentially create 2,000 additional jobs for external service and contract organisations.
Additionally, it is anticipated to contribute approximately C$1.5bn in direct tax revenue to British Columbia and Canada over the mine’s lifespan.
Skeena executive chairman Walter Coles said: “This complete financing package is a result of a competitive and comprehensive process undertaken to find the best financing solution for the company.
“The result is certainty of funding to advance Eskay into production while balancing attractive cost of capital, flexibility and optionality. We welcome Orion alongside existing shareholders as an aligned and committed stakeholder, further validating the merits of the project.”
