Skeena raises $750M in rare pre-revenue mining bond deal
What's the deal? Skeena Gold & Silver has completed a $750M senior secured notes offering at 8.5% interest, maturing in 2031. The Canadian miner is using the proceeds to overhaul its capital structure as it builds out the Eskay Creek gold and silver project in British Columbia, with initial production targeted for Q2 2027.
Of the $750M raised, $184M will go toward buying back two-thirds of a $200M gold stream — essentially repurchasing future production it had previously sold to financier Orion. Another $94M will prefund 18 months of interest payments, while the remaining ~$470M will support construction at Eskay Creek and general corporate purposes.
Why now? Skeena is betting on rising gold prices. By buying back a large chunk of its gold stream now, it increases its exposure to future gold price upside and lowers its expected cost per ounce. The refinancing also replaces a more complex financing package — a $350M undrawn senior secured loan and a $100M cost overrun facility — with a single, simpler debt instrument.
The company says it is the first pre-revenue mining company in over a decade to complete a public high-yield notes offering, signalling growing investor appetite for mining project debt.
What could go wrong? Skeena is taking on $750M in debt before generating any revenue. If Eskay Creek faces construction delays, cost overruns, or permitting issues, the company would still owe semi-annual interest payments with no cash flow to cover them. The 18-month interest reserve provides a buffer, but not an indefinite one.
Gold price risk cuts both ways. Skeena's decision to increase its gold exposure through the stream buyback looks smart if prices stay high — but a sharp decline would pressure margins and make the debt harder to service.
The signal: Pre-revenue mining companies accessing public high-yield debt markets is exceptionally rare — Skeena says it's the first to do so in over a decade. The involvement of KKR, a major global investment fund, and Bank of AmericaDealroom has a profile for this one. Try Dealroom → as a corporate backer suggests institutional investors are increasingly comfortable underwriting construction-stage risk in the mining sector, likely buoyed by sustained gold price strength and tightening supply forecasts.
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