Gold and silver developer Skeena Resources has launched a C$125-million equity raising to strengthen its balance sheet as it pushes forward with construction and permitting of its flagship Eskay Creek project in British Columbia’s Golden Triangle.

The Vancouver-based company said this week it had struck a bought-deal agreement with a syndicate of underwriters led by BMO Capital Markets for 5.21-million new shares at C$24 each. The underwriters also have an over-allotment option for an additional 15%, which could lift the size of the raise further.

Proceeds will be used to fund ongoing construction works at Eskay Creek, progress permitting, and to cover general corporate purposes. Skeena has already started some site activities during 2025 while awaiting final approvals.

Skeena reported that, while the government permitting process was advancing, an unanticipated delay was expected as a result of the current British Columbia government employee strike. 

Negotiations with the Tahltan Central Government regarding the Impact Benefits Agreement were progressing, while the vote to ratify the agreement was expected to take place in the coming weeks. The ultimate date for that approval remains to be scheduled upon completion of the negotiations. 

“This funding provides flexibility to pursue less expensive financing alternatives compared to the existing undrawn senior secured loan facility and represents approximately 4.5% dilution to the company’s total market capitalisation,” said executive chairperson Walter Coles.

As of September 30, Skeena reported unaudited cash of C$105-million. The company said the new equity raising, together with existing cash and financing arrangements, would ensure it had sufficient liquidity to complete permitting. That milestone was a condition precedent to draw down the remainder of a $750-million financing package from private equity group Orion Resource Partners.

The Eskay Creek redevelopment has been cast as one of the highest-grade and lowest-cost openpit gold/silver projects globally, with silver by-product output expected to surpass many primary silver mines. Skeena is aiming to build a long-life, sustainable operation that it hopes will become a cornerstone mine in the Golden Triangle.