Skeena Gold & Silver Announces Proposed USD$750 Million Senior Secured Notes Offering to Refinance Former Project Financing and to Fund Partial Buyback of Existing Gold Stream

Core Viewpoint - Skeena Resources Limited plans to offer and sell US$750 million in Senior Secured Notes due 2031 to fund various initiatives, including a Stream Buy-Down and project advancement for the Eskay Creek project [1][3][7]. Group 1: Offering Details - The Notes will be fully guaranteed by certain subsidiaries related to the Eskay Creek project and secured by a first priority lien on specific properties [2]. - The offering is intended to be made to qualified institutional buyers in the U.S. and non-U.S. persons outside the U.S. under applicable regulations [8]. Group 2: Use of Proceeds - Approximately US$184 million of the proceeds will be used to fund the Stream Buy-Down, while an estimated US$100 million will be allocated to an interest reserve account for the first three semi-annual interest payments [3][4]. - Remaining proceeds will be used to advance the Eskay Creek project, pay fees and expenses, and enhance the company's balance sheet for general corporate purposes [3]. Group 3: Financial Restructuring - The company plans to cancel its existing US$350 million senior secured term loan and cost over-run facility concurrently with the completion of the Offering and Stream Buy-Down [6]. - The Term Loan and cost over-run facility are currently undrawn, and no fees are expected for the cancellations [6]. Group 4: Project Overview - The Eskay Creek project is fully permitted and under construction, with initial production and cash flow expected in the second quarter of 2027 [10]. - Once operational, Eskay Creek is projected to be one of the highest-grade and lowest-cost open-pit precious metals mines globally, with significant silver by-product production [10].