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With feasibility study in hand Skeena Resources seeks financing for $451- million mine

Kitco News

(Kitco News) - There is plenty of capital available for the right projects, said Skeena Resources CEO Walter Coles.

Coles spoke to Kitco on Thursday.

Skeena Resources (NYSE:SKE) is focused on redeveloping the past-producing Eskay Creek gold-silver mine in northwest B.C., an area referred to as the Golden Triangle. The company filed a feasibility study yesterday.

Highlights were an after-tax net present value of C$1.41 billion at a base case of US$1,700 gold and US$19 silver. The company said its after-tax internal rate of return was 50.2%, and it had "an industry-leading" after-tax payback on pre-production capital expenditures of one year. Initial capital costs to build the mine are $451 million.

Coles told Kitco he expects to have a funding announcement in the first quarter of next year. Financing has gotten difficult with the Federal Reserve tightening and the drop in commodity prices.

"I think if we were trying to raise money to go do exploration, I think that would be really hard," said Coles. "In terms of the streamers and debt providers there is a lot of competition, and for good projects, there is plenty of capital available."

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