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March 25, 2022

Barrick to divest stake in Canada’s Skeena Resources for $105m

Skeena is working on revitalising the past-producing Eskay Creek gold-silver mine in British Columbia, Canada.

Barrick Gold has agreed to sell a 12.9% stake in Canadian precious metals developer Skeena Resources to an undisclosed Canadian investment dealer for approximately $105.525m (C$132.5m).

Under the agreement, the dealer will purchase 8,831,250 common shares of Skeena from Barrick for resale on a bought deal basis.

In a press statement, Barrick said: “Depending on market conditions and other factors, including Skeena’s business and financial condition, Barrick may acquire securities of Skeena or dispose of some or all of the securities of Skeena that it may own at such time.”

Skeena Resources is focused on revitalising the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of British Columbia, Canada.

From 1994 to 2008, the mine produced 3.3 million ounces (Moz) of gold and 160Moz of silver at average grades of 45g/t gold and 2,224g/t silver.

Currently, Skeena is undertaking both infill and exploration drilling to advance the gold-silver mine project to a full feasibility study this year.

According to the estimates, the Eskay Creek open-pit property holds 3.88Moz at 4.57g/t AuEq in the proven and probable categories.

With an anticipated annual production capacity of 352,000oz AuEq, the mine is expected to have an operational life of more than nine years.

The latest deal comes days after Barrick Gold said it agreed to restart the Reko Diq gold and copper mining project in Pakistan.

The Reko Diq mine was suspended in 2011 after the Pakistani Government refused to grant permission for Barrick Gold and Chilean firm Antofagasta to develop it.

Barrick will own a 50% stake in the reconstituted gold and copper project while the remaining stake will be held by Pakistan stakeholders.

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