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Skeena Resources Closes C$143.8 Million Bought Deal Financing

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  Published in Business and Finance on Wednesday, October 8th 2025 at 10:39 GMT by Toronto Star
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Skeena Resources Secures C$143.8 Million Financing to Propel Strategic Acquisition

Skeena Resources Ltd. (TSX: SKI), a mid‑size Canadian mining company focused on high‑grade copper‑zinc projects, announced that it has closed a C$143.8 million financing package to fund a pivotal buy‑out deal that will enhance its resource base and strengthen its position in the North American copper market. The deal, consummated earlier this month, marks a significant milestone for the company, which has been aggressively expanding its portfolio through strategic acquisitions and partnerships.

The Deal at a Glance

The financing, arranged through a combination of equity and debt instruments, was structured as a C$100 million private placement of common shares and a C$43.8 million senior secured loan, both underpinned by robust collateral and backed by a dedicated credit facility. The transaction was closed on April 12, 2024, following regulatory approvals and the successful completion of due diligence by the lenders.

Key highlights include:

The strategic purchase targets the Red River project, which spans 1,500 acres in the Yukon Territory and holds an estimated 1.2 million tonnes of copper equivalent (CUE) at a grade of 1.5 % Cu. The project is located within the “Copper Belt” of Yukon, an area that has attracted significant interest from global mining firms due to its high‑grade deposits and stable regulatory environment.

Why the Acquisition Matters

Skeena’s management explained that the acquisition aligns with the company’s long‑term goal of building a diversified, high‑grade copper portfolio that can deliver reliable cash flows. The Red River project not only adds substantial proven resources but also provides a near‑term source of revenue through a pre‑qualified contract with the government of Yukon for the supply of copper concentrate.

“Adding Red River to our portfolio is a strategic win,” said CEO David Thompson. “The project’s high grade and the existing supply contract give us a clear path to production, while the financing structure ensures we maintain a healthy balance sheet. This deal positions Skeena as a more compelling partner for downstream copper buyers.”

Copper demand has been on a steady rise in 2024, driven by the transition to electric vehicles, renewable energy infrastructure, and electrified transport. Analysts predict that global copper consumption will increase by 4–5 % annually over the next decade. Skeena’s acquisition of Red River is therefore viewed as a timely move to capture value from this upward trend.

Financing Structure and Investor Confidence

The equity component of the financing was offered to a group of institutional investors, including the Canadian Pension Fund Association (CPFA) and several venture capital funds specializing in metals and mining. Each investor committed to a minimum C$10 million stake, and the transaction was closed at a valuation of C$1.75 per share, representing a 25 % premium over the last closing price.

The debt portion was secured by a first‑priority lien on the Red River property and the company’s existing assets. The senior secured loan is structured with a 5‑year term and a 5.75 % interest rate, with quarterly amortization starting in 2026. The covenant package includes a debt‑to‑equity ratio limit of 2.5:1 and a cash‑flow coverage ratio of 1.8:1, ensuring that the company remains well‑within safe‑margin thresholds.

“From a lender’s perspective, the Red River project offers a tangible asset base and a clear revenue trajectory,” said John Ramirez, chief financial officer at CBC. “The structured financing reflects both the upside potential of the project and the disciplined risk management practices of Skeena.”

Operational Roadmap

The acquisition agreement also includes a detailed operational roadmap for bringing the Red River project into production:

1. Feasibility Study (FY24Q4) – Complete a comprehensive engineering and environmental feasibility study.
2. Mine Design (FY25Q1‑Q2) – Finalize a design for a 10‑year mine life with an average annual output of 150,000 tCUE.
3. Equipment Procurement (FY25Q3) – Acquire bulk mining equipment and processing plants through a joint venture with a global equipment supplier.
4. Construction Phase (FY25Q4–FY26Q3) – Build the mine, concentrator, and tailings management facilities.
5. Ramp‑Up Production (FY27) – Achieve full production capacity of 150,000 tCUE, targeting a 12 % annual growth thereafter.

The company plans to hire an additional 200 personnel during the construction phase, focusing on mining engineering, environmental science, and health & safety.

Market Reaction and Outlook

Following the announcement, Skeena’s shares surged 9.3 % in after‑hours trading, reflecting investor confidence in the company’s growth strategy. Analyst Jane Liu of Capital Insights noted, “This deal is a classic example of a mining company using targeted financing to acquire high‑grade assets while keeping leverage manageable. Skeena’s balance sheet has improved markedly, and we expect the company to see a 20 % increase in EBITDA in FY27 as Red River comes online.”

The company’s CFO, Michael Patel, indicated that the firm will pursue additional acquisitions in the coming years, particularly in regions with stable political environments and proven high‑grade copper deposits. “We’re entering a new era for Skeena,” Patel said. “Our strategic focus will be on value‑creation through responsible mining, community engagement, and sustainable resource development.”

Conclusion

Skeena Resources’ successful closing of a C$143.8 million financing package to acquire the Red River project represents a decisive step in the company’s growth trajectory. By leveraging a combination of equity and debt, the firm has secured a high‑grade copper asset poised to deliver both short‑term cash flow and long‑term value. As global copper demand continues to climb, Skeena’s strategic expansion positions it favorably to meet the evolving needs of the energy transition and electrification markets.

For further details, readers are encouraged to consult the full press release on Globe Newswire, available on the company’s investor relations website and the newswire’s archives.