- Barrick Gold (ABX) has completed the sale of its Eskay Creek gold and silver project in northwest British Columbia to Skeena Resources
- As consideration for the deal, Barrick received 22.5 million units in Skeena, comprised of one common share and one common share purchase warrant
- The company will also retain a one per cent net smelter royalty on the entire Eskay Creek Project, and is eligible to receive a further C$15 million over the next 24 months
- Now a major shareholder of Skeena, Barrick holds 24,075,000 shares, representing approximately 12.4 per cent of the company’s issued and outstanding shares
- Barrick Gold (ABX) is currently up 181 per cent and is trading at $37.78 per share
Barrick Gold (ABX) has completed the sale of its Eskay Creek gold and silver project in northwest British Columbia to Skeena Resources.
Pursuant to a binding terms sheet, which was signed on July 5, 2020, Skeena has now acquired a 100 per cent interest in the project by issuing a total of 22.5 million units to Barrick.
These units are comprised of one common share in Skeena and one common share purchase warrant, exercisable at a price of C$2.70 per share over a period of two years.
Barrick will also retain a one per cent net smelter royalty on the entire Eskay Creek land package, and is eligible to receive a contingent payment of $15 million over the next 24 months.
Walter Coles Jr., CEO of Skeena Resources, said on August 8 – when the two companies signed a definitive agreement – that he was pleased with the market’s positive reaction to the proposed acquisition, and that he was delighted to welcome Barrick as a major shareholder.
“On closing, Skeena will gain 100 per cent ownership and operatorship of Eskay Creek, which we hope to revitalise as an open-pit gold-silver mine.
“Skeena is honoured to have Barrick as an important shareholder in the company going forward,” he added.
With the transaction now complete, Barrick holds 24,075,000 shares in Skeena, representing approximately 12.4 per cent of the company’s issued and outstanding securities on a non-diluted basis.
Assuming the full exercise of the warrants, this ownership will be bumped to a total of roughly 17.2 per cent.
Barrick Gold (ABX) is currently up 181 per cent and is trading at $37.78 per share at 12:48pm EDT.