VANCOUVER, British Columbia — Skeena Resources Limited, a precious metals development company focused on its Eskay Creek project, announced on April 10, 2026, that it has successfully completed a US$750 million offering of senior secured notes. The notes, which carry an 8.500% interest rate and mature in 2031, are non-callable for the first two years and will feature semi-annual interest payments. This move, described by company executives as a key step in optimizing its capital structure, replaces previous financing arrangements and aims to lower costs while boosting financial flexibility for the ongoing development of the Eskay Creek Gold-Silver Project in British Columbia's Golden Triangle.
The transaction marks a significant milestone for Skeena, which trades on the Toronto Stock Exchange under the ticker SKE and on the New York Stock Exchange as SKE. According to the company's press release, the proceeds from the notes offering will be used to cancel an undrawn US$350 million senior secured loan and a US$100 million cost overrun facility tied to a gold stream agreement, collectively referred to as the Facilities. Additionally, Skeena repurchased approximately 66.67% of a US$200 million gold stream for US$184 million, reducing its streaming obligations ahead of schedule.
Walter Coles, executive chairman of Skeena, highlighted the importance of the deal in a statement. "Skeena has a track record of breaking new ground in the mining industry, and this transaction represents another important milestone," Coles said. "We are proud to be the first pre-revenue mining company in more than a decade to successfully complete a public high-yield notes offering. The strong support for this debt issuance from leading global investment firms, including KKR and Bank of America, underscores growing confidence in our strategy, our management team, and the robustness of the Eskay Creek project as we progress toward initial production in Q2 2027."
Coles further emphasized the strategic benefits of the gold stream buyback. "Our constructive outlook on gold prices further supports the decision to pursue the gold stream buyback as a disciplined and value accretive capital allocation strategy," he continued. "By reducing our streaming encumbrance earlier than originally contemplated, we simplify our capital structure, increase our exposure to rising gold prices, lower our expected cost per ounce of gold, materially improve future operating margins and enhance the overall economics and long-term value of the Eskay Creek project."
The refinancing builds on a project financing package secured by Skeena in 2024, which included the US$350 million senior secured loan, the US$100 million cost overrun facility, and the US$200 million gold stream, all arranged with Orion Resource Partners and its affiliates. That original structure, announced in a June 25, 2024, news release, provided Skeena with contractual flexibility to terminate the loan and facility without penalty, a provision that proved advantageous as both remained undrawn at the time of cancellation. No fees were incurred in the process, according to the company.
Under the previous gold stream terms, stream holders were entitled to 10.55% of payable gold production from the Eskay Creek mine at a price equivalent to 10% of the spot market price for the life of the mine. Skeena had drawn the full US$200 million in 2025 to fund construction activities. The company originally held an option to repurchase up to 66.67% of the stream at an 18% imputed internal rate of return after commercial production began, but negotiations allowed for this early buyback, completed as part of the notes offering.
This adjustment is expected to materially improve operating margins by increasing Skeena's direct exposure to gold prices and production upside. The Eskay Creek project, located in the mineral-rich Golden Triangle region of northwestern British Columbia, is fully permitted and currently under construction. Once operational, it is projected to become one of the world's highest-grade, lowest-cost open-pit precious metals mines, with significant silver byproduct output that could surpass many primary silver operations, the company stated.
Skeena's decision to pursue high-yield notes reflects a broader trend in the mining sector, where developers seek covenant-light debt to navigate volatile commodity markets and construction risks. The notes' structure offers more flexibility compared to the prior facilities, which had stricter covenants, according to details in the announcement. This shift comes at a time when gold prices have shown resilience, influenced by global economic uncertainties, inflation concerns, and geopolitical tensions, providing a favorable backdrop for such financings.
The Golden Triangle, known for its prolific deposits including the nearby Red Chris and Brucejack mines, has attracted substantial investment in recent years. Skeena's Eskay Creek revival builds on the legacy of the original Eskay Creek mine, which operated from 1994 to 2008 and produced over 3.3 million ounces of gold and 160 million ounces of silver. The current project aims to leverage modern techniques for enhanced recovery and efficiency, targeting initial production in the second quarter of 2027.
Company officials stressed the importance of community partnerships in the announcement. Skeena is committed to responsible and sustainable mining in collaboration with Indigenous communities, a critical aspect in the region where First Nations have significant land rights and influence over development approvals. The project's progress toward cash flow generation is seen as a boon for local economies, though it remains subject to the usual mining risks such as fluctuating metal prices and operational delays.
Financially, the notes offering reduces Skeena's overall cost of capital, a key metric for pre-production miners balancing debt with equity. All amounts in the release are denominated in U.S. dollars, reflecting the international nature of the financing. The company's corporate headquarters is located at Suite 2600, 1133 Melville Street in Vancouver, with investor relations handled by Galina Meleger, who can be reached at info@skeenagold.com for further details.
While the transaction is complete, forward-looking elements in the announcement carry caveats. Skeena noted that statements about project timelines, production achievements, margin improvements, and cost reductions are based on management's estimates and assumptions as of April 10, 2026. Actual results could differ due to factors like economic conditions, metal price volatility, regulatory changes, and operational challenges common in the industry.
Risks outlined include general economic downturns, exploration outcomes, reclamation costs, equipment failures, labor issues, and geopolitical events such as conflicts in Europe and the Middle East. The company also highlighted potential impacts from fluctuating foreign exchange rates, rising mining consumable prices, and uncertainties in smelter agreements, which are market-dependent. Skeena's filings, including its Management's Discussion and Analysis for the year ended December 31, 2025, and Annual Information Form dated March 24, 2026, provide more comprehensive risk disclosures available on SEDAR+ and EDGAR.
Looking ahead, this refinancing positions Skeena to advance construction without the overhang of the previous facilities, potentially accelerating path to production. Analysts following the sector may view the early gold stream repurchase as a bullish signal, especially with gold trading above US$2,000 per ounce in recent months. For shareholders, it simplifies the capital stack and aligns incentives with rising commodity values.
As Skeena moves closer to its 2027 production target, the mining community watches closely. The company's ability to secure backing from major players like KKR and Bank of America signals maturing investor appetite for high-potential projects in stable jurisdictions like Canada. Yet, with no assurance of timelines or economics, the path remains fraught with the inherent uncertainties of resource development.
In summary, Skeena's US$750 million notes issuance not only refinances its debt but also strategically repositions the company for long-term value creation at Eskay Creek. This development underscores ongoing innovation in mining finance amid a dynamic global market.