SKE · Skeena Resources Limited

Skeena Resources Limited has executed a transformative refinancing transaction by issuing US$750 million in 8.500% Senior Secured Notes due 2031, marking the first such public high-yield offering by a pre-revenue mining company in over a decade. This replaces a prior 2024 project financing package from Orion, including an undrawn US$350 million Senior Secured Loan and US$100 million Cost Overrun Facility under the Gold Stream, both cancelled without fees due to their undrawn status. The Notes offer covenant-light terms, lowering the overall cost of capital and boosting financial flexibility ahead of Eskay Creek's targeted Q2 2027 production. A key component is the US$184 million buyback of 66.67% of the US$200 million Gold Stream—fully drawn in 2025—which originally entitled holders to 10.55% of payable gold at 10% of market price for the mine life. Exercising this option early reduces streaming encumbrances, directly enhancing gold price leverage, operating margins, and project economics. Gross proceeds allocation includes US$94 million to prefund the first three semi-annual interest payments and ~US$470 million for ongoing Eskay Creek construction via a disbursement account, plus general purposes. Executive Chairman Walter Coles highlighted strong investor support from firms like KKR and Bank of America, affirming confidence in the high-grade, low-cost Eskay Creek project in British Columbia's Golden Triangle. This positions Skeena for simplified capital structure and maximized shareholder value as production nears.