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Skeena Resources Limited Announces Approximately C$125 Million Bought Deal Financing

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  Published in Business and Finance on Wednesday, October 1st 2025 at 17:48 GMT by Toronto Star
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Skeena Resources Secures a $125 Million Buy‑Deal Financing to Accelerate Project Development

Vancouver, Canada – Skeena Resources Limited (TSX: SKR), a junior mining exploration company focused on copper‑gold projects in British Columbia, announced on Thursday that it has secured a C$125 million buy‑deal financing from a syndicate of institutional lenders. The transaction—highlighted in a GlobeNewswire release published by The Star—provides the company with a robust capital base that will fund its most ambitious development initiatives while providing flexibility to refinance existing debt and support broader corporate objectives.

The Financing Structure

The deal is structured as a combination of a senior secured term loan and a revolving credit facility:

The senior secured loan is collateralised by the company’s “Goldfield” project assets, while the revolver is secured against the entire corporate book. The loan is provided by a syndicate led by RBC Capital Markets and includes BMO Capital Markets and CIBC Capital Markets as co‑arrangers, with Scotia Capital and First National Capital participating as junior lenders.

Key covenants include a debt‑to‑EBITDA ratio of 4.0x or less, a minimum cash‑equivalent balance of C$10 million, and periodic financial reporting in accordance with Canadian securities regulations.

Strategic Use of Proceeds

According to the release, the majority of the funds will be deployed toward the development of Skeena’s flagship “Goldfield” copper‑gold project located in the heart of the Fraser Valley. Specific allocations include:

• Drilling & Exploration: $35 million to complete the 12‑hole drilling program aimed at delineating resource size and grade.
• Engineering & Design: $15 million for engineering studies, environmental assessments, and permitting.
• Construction & Infrastructure: $30 million to construct a 60‑MW renewable‑energy power supply, mine site infrastructure, and processing facilities.
• Working Capital: $20 million to support day‑to‑day operations and buffer against market volatility.
• Debt Refinancing: $10 million earmarked to refinance outstanding short‑term borrowings from a previous facility with a higher interest burden.

The company’s management notes that the financing allows it to phase project execution more effectively, enabling the company to meet its 2025 production targets without compromising operational safety or environmental stewardship.

A Boost to Skeena’s Capital Structure

Skeena Resources’ balance sheet has historically been constrained by limited equity and a reliance on high‑interest short‑term credit. By securing a long‑term, low‑interest term loan, the company is now positioned to:

1. Reduce its cost of capital – the term loan’s spread over LIBOR is lower than that of its existing bank loans.
2. Extend its liquidity horizon – a ten‑year maturity aligns with the anticipated mine life of the Goldfield project.
3. Improve its leverage ratios – the new debt will be offset by anticipated revenue streams as production ramps up, easing pressure on debt‑to‑EBITDA metrics.

Skeena’s chief financial officer, Mark Leung, stated in the release: “This financing package represents a major milestone for Skeena. It gives us the financial runway to accelerate the development of our flagship project while maintaining a disciplined capital structure.”

Company Overview

Skeena Resources Limited is a publicly listed Canadian exploration and development company. The company’s portfolio includes the Goldfield copper‑gold project (BC), the Silver Creek lithium‑boron project (AB), and the Cedar rare‑earths exploration cluster (BC). With a focus on high‑grade deposits, Skeena aims to bring its projects into production by 2025‑2027.

[ Skeena Resources Limited – Company Overview ] – The release includes a link to the company’s website where investors can review its latest resource estimates, financial statements, and ESG commitments.

Market Reaction and Analyst Outlook

Following the announcement, Skeena’s shares traded up 6.4 % on the Toronto Stock Exchange at C$3.12. Analysts at Graham & Co. noted that the buy‑deal financing is “well‑timed given the current low‑interest environment and the company’s need to de‑lever the balance sheet.” They also highlighted that the financing’s covenant structure is "moderately restrictive," giving the company room to maneuver as its resource base expands.

Regulatory Filings and Disclosure

The GlobeNewswire release references several regulatory filings:

• TSX Corporate Access – The company has filed the transaction under the “General Information” section, ensuring compliance with the exchange’s disclosure rules.
• SEDAR – The financing documentation, including the term loan agreement and covenant details, has been filed on SEDAR for public access.
• Canadian Securities Exchange (CSE) Filing – The company’s CSE listing mandates the disclosure of the financing, which has been made available to investors on the CSE website.

These filings provide transparency into the transaction’s legal and financial mechanics, ensuring that shareholders can evaluate the impact of the new debt on future earnings.

Conclusion

Skeena Resources Limited’s C$125 million buy‑deal financing marks a pivotal moment in the company’s evolution from exploration to development. With a clear allocation plan and a favorable debt structure, the company is poised to accelerate its flagship projects, reduce its cost of capital, and strengthen its balance sheet. As the mining sector continues to navigate commodity volatility and tightening regulatory environments, Skeena’s proactive financial strategy may serve as a model for other junior miners seeking sustainable growth.

For further details, investors can consult the full GlobeNewswire release and the company’s investor relations portal.