Skeena Gold & Silver Announces Proposed USD$750 Million Senior Secured Notes Offering to Refinance Former Project Financing and to Fund Partial Buyback of Existing Gold Stream
Skeena swaps debt for notes and buys back its upside at Eskay Creek
The most recent news (March 31, 2026) announces a major financial restructuring and a project construction update. Skeena is launching a US$750 million Senior Secured Notes offering due 2031. This capital will be used to: - Refinance the previous US$350 million senior secured term loan and cost-overrun facility with Orion. - Fund a US$184 million buy-down of an existing gold stream, reducing the percentage of gold Skeena must deliver to Orion by 66.67%. - Fund a US$100 million interest reserve for the first three payments. Simultaneously, the company confirmed the Eskay Creek project is 49% complete. However, the construction budget has increased by US$99 million (17.6%) to US$659 million compared to the 2023 DFS, though leasing arrangements have mitigated US$94 million of upfront cash requirements.
- Financial Flexibility: The shift from a term loan to senior notes typically provides more flexible covenants and pushes out maturity (2031), though it introduces fixed interest obligations.
- Margin Expansion: The 66.67% reduction in the gold stream is a massive positive for long-term cash flow. By paying US$184 million now, Skeena retains significantly more exposure to the gold price during the high-grade early years of production.
- Cost Overruns: The US$99 million budget increase is a negative, but not unexpected in the current inflationary environment. The fact that 66% of costs are contractually committed provides some protection against further "bracket creep."
- De-risking: Reaching 49% completion and securing all major permits (EMA and Mines Act) as of February 2026 removes the primary "stroke of a pen" risks. The project remains on track for Q2 2027 production.
Skeena is focused on restarting the past-producing Eskay Creek mine in BC’s Golden Triangle. - Flagship: Eskay Creek (100% interest). - Project Type: High-grade open pit. - Economics: Years 1-5 projected at 450,000 oz AuEq/year at an AISC of US$538/oz (co-product). - Reserves: 4.6 Moz AuEq at 3.6 g/t. - Secondary Asset: Snip Project (Underground exploration).