Skeena secures $750 million finance package for Eskay Creek development

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Skeena Resources has secured a $750 million financing package for its 100%-owned Eskay Creek mine redevelopment. The mine, located in British Columbia’s Golden Triangle, operated as an underground mine from 1994 to 2008.

$350 million capital committed and available from a senior secured loan with 1% standby fee and no break fee. “The result is certainty of funding to advance Eskay into production while balancing attractive cost of capital, flexibility, and optionality,” Coles said. “We welcome Orion alongside existing shareholders as an aligned and committed stakeholder, further validating the merits of the project.”

Using a gold price of $1,800/oz. and a silver price of $23/oz., the project will reach payback in 1.2 year. Life of mine all-in sustaining costs will be $687/oz.

 

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