Skeena's $750M Play to De-Risk Eskay Creek and Boost Gold Exposure

VANCOUVER, BC – March 31, 2026 – Skeena Resources Limited has unveiled a major financial restructuring, announcing its intent to raise US$750 million through a senior secured notes offering. The move is a strategic gambit designed to optimize its capital structure, significantly increase its exposure to future gold production, and fully fund its flagship Eskay Creek project through to its targeted 2027 production start.

The proposed offering of notes, due in 2031, marks a pivotal moment for the precious metals developer, signaling a transition from a company building a mine to one preparing for long-term operations. The proceeds are earmarked for a multi-pronged strategy that includes partially buying back a costly gold stream, cancelling previous credit facilities, and shoring up the company’s balance sheet as it navigates the final stages of construction in British Columbia's famed Golden Triangle.

A Strategic Financial Overhaul

At the heart of the transaction is a comprehensive overhaul of Skeena’s financing arrangements. The company plans to replace its existing, undrawn US$350 million senior secured term loan and an associated cost over-run facility with the new, longer-dated notes. This swap from traditional bank-style debt to the bond market is a common move for developers approaching production, often providing greater operational flexibility through less restrictive covenants.

A significant portion of the capital raise, approximately US$184 million, is allocated for a partial buy-down of its existing gold stream agreement with Orion Mine Finance. Another estimated US$100 million will be set aside in an interest reserve account, a prudent measure to cover the first three semi-annual interest payments on the new notes, effectively de-risking the critical pre-revenue construction period.

The remaining funds will be directed toward the final development of the Eskay Creek project, covering associated fees and expenses, and bolstering Skeena’s treasury for general corporate purposes. This comprehensive funding package is intended to provide a clear and fully-financed path to cash flow, removing financing overhangs that can weigh on development-stage companies.

Unlocking Value by Reclaiming the Stream

The decision to use a substantial portion of the proceeds to reduce its streaming obligation is perhaps the most telling aspect of Skeena’s strategy. Streaming agreements, a popular form of alternative financing in the mining sector, involve an upfront cash payment to a mining company in exchange for the right to purchase a percentage of its future metal production at a deeply discounted, fixed price.

Skeena’s original US$200 million stream agreement entitled its partner, Orion, to 10.55% of the payable gold produced at Eskay Creek. By making a US$184 million payment, Skeena will slash that obligation by two-thirds (66.67%), reducing Orion's future claim to approximately 3.52% of the mine's gold output.

This buy-down is a direct bet on the future success and profitability of Eskay Creek. By retaining a larger share of its own gold production, Skeena significantly increases its leverage to the price of gold. This will directly translate to improved future operating margins and a higher net present value for the project, ultimately enhancing shareholder returns. The move reflects a broader industry trend where companies, once past the initial high-risk development phase, seek to reclaim full exposure to their assets by reducing or eliminating stream and royalty burdens. It is a calculated trade-off: using new debt to buy back future equity-like cash flow, signaling management's strong confidence in the project's long-term economics.

Fueling the Path to Production at Eskay Creek

This financial maneuvering serves one primary goal: to ensure the smooth and successful completion of the Eskay Creek Gold-Silver Project. Once a legendary high-grade underground mine, Skeena is redeveloping it as a large-scale open-pit operation poised to become one of the world's highest-grade and lowest-cost precious metals producers.

The project is already well advanced. Having secured all necessary federal and provincial permits by early 2026, construction is proceeding on schedule. As of the end of February, the project was reported to be 49% complete, with initial production firmly on track for the second quarter of 2027 and commercial production expected in the third quarter.

Skeena has also managed to de-risk the construction process by contractually committing 66% of the project's costs. While the total construction budget was updated to US$659 million, reflecting inflationary pressures and design refinements, this new financing package is designed to cover the remaining expenditures and provide a healthy contingency. By securing its full funding needs in a single, decisive transaction, the company aims to eliminate financial uncertainty and focus entirely on operational execution over the next year.

Market Reacts as Skeena Enters Home Stretch

Investors responded positively to the announcement, with Skeena’s shares (TSX: SKE, NYSE: SKE) climbing over 4% on the Toronto Stock Exchange in the trading session following the news. The move appears to have been welcomed as a clarifying event that de-risks the final leg of the company’s journey to becoming a producer.

Analyst sentiment, while mixed, leans toward a "Moderate Buy" consensus. Major Canadian banks like Scotiabank and CIBC have reiterated "outperform" ratings, viewing the financing as a positive catalyst. However, the pre-revenue status of the company draws caution from others. Ratings firms have pointed to the inherent risks of a developer, including sustained cash burn and negative earnings, as reasons for a more neutral or cautious stance.

This divergence in opinion is common for companies at Skeena's stage. Valuation metrics present a complex picture; the company's stock appears expensive based on its price-to-book ratio, yet discounted cash flow (DCF) models, which look ahead to future production, suggest the stock may be significantly undervalued. The successful execution of this financing and the subsequent ramp-up of Eskay Creek will be the ultimate test. With this new capital structure, Skeena is making a clear statement that it is ready to make the leap from developer to producer, aiming to deliver the full economic potential of its world-class asset to its shareholders.