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Skeena Options Snip and Receives Investment from Hochschild
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICESOR DISSEMINATION IN THE UNITED STATES VANC...
About this update from Skeena Resources Limited
[{"type":"text","content":"Skeena Options Snip and Receives Investment from HochschildNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICESOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / September 19, 2018 / Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF) (\"Skeena\" or the \"Company\") will issue 7,519,331 flow-through common shares of the Company at a price of C$0.90 per share, which will generate aggregate net proceeds to Skeena of C$6,767,398 (the \"Offering\"). The Offering price represents a premium of 80% over Skeena's closing share price on September 19, 2018. Hochschild Mining Holdings Limited (a wholly owned subsidiary of Hochschild Mining plc) (\"Hochschild\") will acquire the shares and, after closing will own 8.3% of Skeena's total issued and outstanding shares. In addition, Hochschild will have the right to participate in future offerings to maintain its percentage interest in Skeena.In connection with the Offering, Skeena shall grant Hochschild an option (the \"Hochschild Option\") to earn a 60% undivided interest in the Company's Snip Gold Project (\"Snip\" or the \"Project\") located in the Golden Triangle of British Columbia by spending twice the amount Skeena has spent since it originally optioned Snip from Barrick.Skeena's CEO, Walter Coles Jr. commented, \"We are extremely pleased to have Hochschild as a partner. We consider them one of the best underground mining companies in the world and their interest in Snip should serve as validation of the potential for the Project.\"The Company and Hochschild have entered into a heads of agreement (the \"HOA\"), which sets out the terms of the Hochschild Option. Under the HOA, Hochschild shall have three years from the closing to provide notice to Skeena that it wishes to exercise its option (the \"Option Notice\"). Once exercised, Hochschild shall have three years (the \"Option Period\") to: incur expenditures on Snip that are no less than twice the amount of such expenditures incurred by Skeena from March 23, 2016 up until the time of exercise of the Option by Hochschild. (As of June 30 2018, Skeena had incurred C$16.9 million of expenditures at Snip); incur no less than C$7.5 million in exploration or development expenditures on Snip in each 12-month period of the Option Period; and provide 60% of the financial assurance required by governmental authorities for the Snip minin...