Franco-Nevada financing and further royalty over Eskay Creek Gold-Silver Mine
Torys acted as counsel to Franco-Nevada in the C$81 million financing package made available to Skeena Resources Limited to further develop the Eskay Creek Gold-Silver project in northwest British Columbia, including its C$56 million acquisition of a further 1.0% net smelter return royalty on production from Eskay Creek and a C$25 million private placement of 7% unsecured convertible debentures.
On December 18, 2023, Skeena Resources Limited ("Skeena") closed a financing package of C$81 million with Franco-Nevada Corporation ("Franco-Nevada") to further develop their 100% owned Eskay Creek Gold-Silver Project ("Eskay Creek") located in the Golden Triangle of northwest British Columbia.
The C$81 million financing package consists of
- the sale of a 1.0% Net Smelter Return ("NSR") royalty on Eskay Creek for C$56 million; and
- a C$25 million unsecured convertible debenture.
With the incremental royalty purchase, Franco-Nevada now holds a 2.5% NSR on all of Skeena's Eskay Creek properties.
The convertible debenture will carry an interest rate of 7% and mature on the earlier of December 19, 2028, or on the completion of a Board approved project financing for Eskay Creek. The debenture will be convertible into common shares at a conversion price of C$7.70.
Further information can be found on Accesswire’s website.
Skeena is a Canadian mining exploration and development company focused on revitalizing the Eskay Creek and Snip Projects, two past-producing mines located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada.
Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets.
Torys a également agi dans le cadre des mandats suivants en lien avec ce projet :
- Orion Mine Finance in the US$750 million project financing made available to Skeena Resources Limited to fund the development of the Eskay Creek gold-silver project in northwest British Columbia, including a US$100 million equity investment, US$200 million gold stream, US$350 million senior secured loan, and US$100 million cost over-run facility
Franco-Nevada in its C$27 million acquisition of a 0.5% NSR royalty on Skeena Resources Limited’s Eskay Creek gold-silver project in northwest British Columbia
Franco-Nevada in its strategic investment in Skeena Resources Limited and the negotiation of a right of first refusal over the sale of a 0.5% net smelter return royalty on the Eskay Creek gold-silver project located in northwest British Columbia
| Territoire | Tahltan territory |
| Province/État | Colombie-Britannique |
| Pays | Canada |
| Nature du mandat | Accord de redevances, Financement de projet |
| Client | Franco-Nevada Corporation |
| Rôle du client | Acquéreur, Fournisseur de capitaux |
| Valeur | 81 000 000 $ CAD |