Receive our newsletter – data, insights and analysis delivered to you
  1. News
August 5, 2020

Barrick Gold and Skeena sign deal on Canada’s Eskay Creek property

Canadian firm Skeena Resources has signed a definitive agreement with gold major Barrick Gold to exercise an option to acquire a 100% interest in the Eskay Creek property in Canada.

Canadian firm Skeena Resources has signed a definitive agreement with gold major Barrick Gold to exercise an option to acquire a 100% interest in the Eskay Creek property in Canada.

The Eskay Creek property is located in the Golden Triangle of north-west British Columbia in Canada.

Skeena will gain 100% ownership of Eskay Creek and will serve as the mine operator, while Barrick will become a significant shareholder in Skeena.

Upon completion of the deal, Barrick would hold 24,075,000 Skeena common shares on a pro-forma basis. This amounts to about 12.4% of the Canadian firm’s issued and outstanding common shares.

Skeena will also grant a 1% net smelter return (NSR) royalty on the entire Eskay Creek land package.

A contingent payment of C$15m ($11.21m) will become active if Skeena sells more than a 50% interest in Eskay Creek during the 24-month period after closing of the transaction.

Content from our partners
Innovations in mining and the future of the industry
Four challenges for the future of mining and how to overcome them
An everyday health hazard: How to protect against petrochemicals

Expected to be closed in the fourth quarter this year, the transaction is subject to customary closing conditions and other government approvals.

Skeena Resources CEO Walter Coles said: “We were encouraged by the positive market reaction to the announcement of the binding term sheet in respect to the Eskay Creek transaction with Barrick and are delighted to now announce the signing of the Definitive Agreement.

“On closing, Skeena will gain 100% ownership and operatorship of Eskay Creek, which we hope to revitalize as an open-pit gold-silver mine. Skeena is honoured to have Barrick as an important shareholder in the Company going forward.”

In December 2017, Skeena Resources signed an option agreement to wholly acquire Barrick Gold’s Eskay Creek property.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU