Skeena Resources (SKE.V) took advantage of a short financing window earlier in March when the company announced a fully subscribed placement of flow-through shares that will fund the ongoing exploration programs on the company’s Eskay Creek project in British Columbia’s Golden Triangle area. Skeena will issue 17.3 million flow-through shares at C$1.155 per share which is a premium of 46% to the current share price and more than 42% compared to the closing price of C$0.81 before announcing the financing.
Considering the financing was announced as ‘fully subscribed’ and Skeena hasn’t provided an update since announcing the flow-through financing, we are assuming the deal is still on and will close in the next few days. Once completed, we estimate Skeena will have access to about C$30M in cash on its balance sheet. The share count will increase to approximately 153.5M shares, giving the company a market capitalization of approximately C$129M. On March 29th, 4.6 million warrants at C$0.90 expired while an additional 5.375M warrants will expire one June 13th. These have a strike price of C$1, and could add an additional C$5.4M in cash to Skeena’s treasury.
Disclosure: The author has no position in Skeena Resources.