Skeena Resources (TSX: SKE) and the Tahltan Central Government (TCG) announced that they have entered into an investment agreement, pursuant to which TCG have agreed to invest C$5 million ($3.9m) into Skeena by purchasing 1,597,138 Tahltan investment rights.
Rights will automatically vest and convert into Common Shares, at a ratio of one right per one common share over the three-year period following the closing of the offering.
Skeena Resources is developing the past-producing Eskay Creek mine, on Tahltan Territory in British Columbia’s Golden Triangle.
According to the company, Eskay contains an open-pit resource of 2.6 million ounces at 5.9 g/t AuEq in the Indicated category and 1.4 million ounces at 3.0 g/t AuEq in the Inferred category.
“Skeena is delighted to welcome Tahltan as partners in the company,” Skeena’s CEO Walter Coles said in the press release. “Over the years we have often discussed our mutual desire to have the Tahltan Nation become owners of natural resource projects being developed in their Territory.”
“This investment into Skeena represents a further step in an evolving relationship with the Tahltan Nation,” Coles said. “We look forward to continuing our work with the Tahltan and gaining the support required for Skeena’s projects.”
“Tahltan Territory is home to British Columbia’s resource-rich ‘Golden Triangle’ and a booming mineral exploration industry,” Chad Norman Day, TGC president said.
Day said mining has always been part of the Tahltan culture, both in the past and in present.
“For thousands of years, our people prospected, mined, and utilized obsidian for tools, weaponry, and trade. More recently, Tahltans supported miners during the gold rush and have had operating mines in our homelands for multiple generations,” Day said.
“In partnering with Skeena, the Tahltan Nation is evolving and taking significant steps forward by becoming meaningful equity partners in these projects. Ownership provides the Tahltan Nation with a strong seat at the table as we continue our pursuit towards capacity building and economic independence for the Tahltan people.”
Good move all round. Congratulations.