Skeena Gold & Silver announced it has completed a $750 million aggregate principal offering of 8.500% senior secured notes maturing in 2031, marking a major step in optimizing its capital structure and advancing the Eskay Creek project.
The notes are non-callable for the first two years and include semi-annual interest payments. Proceeds from the offering will be used to refinance existing financing arrangements, reduce overall cost of capital, and enhance financial flexibility as the company progresses toward production.
As part of the refinancing strategy, Skeena is canceling its previously undrawn $350 million senior secured loan and $100 million cost overrun facility, while also repurchasing approximately 66.67% of its $200 million gold stream. This restructuring simplifies the company’s capital framework and improves long-term project economics.
The company allocated $184 million to repurchase a majority stake in the gold stream, increasing its exposure to gold prices and future production from Eskay Creek. An additional $94 million has been set aside in an interest reserve account to cover the first 18 months of interest payments. The remaining approximately $470 million will support ongoing construction, general corporate purposes, and transaction-related expenses.
The Eskay Creek project, located in British Columbia’s Golden Triangle, is fully permitted and under construction, with initial production targeted for the second quarter of 2027. Once operational, it is expected to be one of the highest-grade and lowest-cost open-pit precious metals mines globally, with significant silver by-product output.
The company noted that transitioning to the new notes structure reduces financing constraints due to its covenant-light nature, while also improving margins and increasing long-term value through reduced streaming obligations.
KEY QUOTES:
“Skeena has a track record of breaking new ground in the mining industry, and this transaction represents another important milestone. We are proud to be the first pre revenue mining company in more than a decade to successfully complete a public high yield notes offering. The strong support for this debt issuance from leading global investment firms, including KKR and Bank of America, underscores growing confidence in our strategy, our management team, and the robustness of the Eskay Creek project as we progress toward initial production in Q2 2027.”
“Our constructive outlook on gold prices further supports the decision to pursue the gold stream buyback as a disciplined and value accretive capital allocation strategy. By reducing our streaming encumbrance earlier than originally contemplated, we simplify our capital structure, increase our exposure to rising gold prices, lower our expected cost per ounce of gold, materially improve future operating margins and enhance the overall economics and long term value of the Eskay Creek project.”
Walter Coles, Executive Chairman, Skeena Gold & Silver
