Junior miner Skeena is now the full owner of the Eskay Creek gold/silver project, in the Golden Triangle of north-west British Columbia.
The company said on Monday that it concluded a transaction to buy the asset from gold major Barrick.
Consideration for the transaction consists of the issuance by Skeena of 22 500 000 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, the grant of a 1% net smelter royalty on the entire Eskay Creek land package and a contingent payment of C$15-million payable during a 24-month period after closing.
Barrick holds 24 075 000 Skeena common shares, representing about 12.4% of Skeena’s issued and outstanding common shares, 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 about 17.2% of Skeena’s issued and outstanding common shares.