Barrick will hold 35,325,000 common shares, representing approximately 17.2% of Skeena’s issued and outstanding common shares
Barrick completes Eskay Creek transaction. (Credit: Pete Linforth from Pixabay)
In line with its strategy of focusing on Tier One assets, Barrick Gold Corporation (“Barrick”) (NYSE:GOLD)(TSX:ABX) has completed the recently announced transaction pursuant to which Skeena Resources Ltd. (“Skeena”) exercised its option to acquire the Eskay Creek project and Barrick waived its back-in right on the Eskay Creek project.
As previously announced, consideration for the transaction consists of: (i) the issuance by Skeena of 22,500,000 units (the “Units”), with each Unit comprising one common share of Skeena and one half of a warrant, with each whole warrant entitling Barrick to purchase one additional common share of Skeena at an exercise price of C$2.70 each until the second anniversary of the closing date; (ii) the grant of a 1% NSR royalty on the entire Eskay Creek land package; and (iii) a contingent payment of C$15 million payable during a 24-month period after closing.
Barrick holds 24,075,000 Skeena common shares, representing approximately 12.4% of Skeena’s issued and outstanding common shares (calculated on a non-diluted basis), and assuming the exercise in full of all of the warrants issued pursuant to the transaction, Barrick will hold 35,325,000 common shares, representing approximately 17.2% of Skeena’s issued and outstanding common shares.
Source: Company Press Release