| ||May 26, 2010|
Skeena Proposes $1,000,000 Private Placement Financing
| ||News Release #10-07|
Skeena Resources Limited (TSX.V: SKE) proposes to raise up to $1,000,000 through a non-brokered private placement financing which will be sold at $0.05 CAD per Unit. Each Unit will be comprised of one common share and one non-transferable share purchase warrant. Each full warrant will be exercisable into one common share of the Company at an exercise price of $0.10 per share in year 1 and $0.20 per share in year 2. Subsequent to the conclusion of the initial 4-month hold period, the remaining expiry period of the warrants may be reduced, upon notice to holders and at the election of the Company, if the shares trade at a price equal to or greater than $0.40 per share for 10 consecutive trading days. If this condition is met and the Company so elects, the exercise period will be reduced to 25 business days from the date notice is provided by the Company to the warrant holders.
Insiders of the Company have committed to $374,000 of this placement. This financing is subject to regulatory approval and finders' fees may be paid to accredited agents on that portion of the funds raised by third parties. The shares issued under this financing will be subject to a hold period of four months plus one day from the date of closing of the offering. The funds will be directed to advancing the Tropico copper-platinum-palladium-gold project in Sinaloa State, Mexico, the acquisition of additional projects and to general working capital.
To date, nine sulphide occurrences have been identified at Tropico, consisting of variable amounts of chalcopyrite, cubanite, chalcocite, bornite, pyrrhotite, pyrite and minor pentlandite. Some of the better mineralized trenches at the Maricela Occurrence were reported to assay 0.50 to 1.00 % copper (Cu) and up to 1 gram/tonne combined platinum (Pt) + palladium (Pd) + gold (Au) (generally with a platinum to palladium ratio in the order of 0.75:1) over widths of 15 to 160 metres. Some 39 drill holes totaling approximately 6,550 metres are reported in the 2002-2003 Santoy-Almaden Joint Venture ("the JV") summary report (28 core holes by the JV). The best reported drill intercepts were 0.5% Cu and 0.75 g/t Pt+Pd+Au over 38.9 metres (hole M-02-08) and 0.39 % Cu and 0.55 g/t Pt+Pd+Au over 128.1 metres (hole M-01-03) at Maricela; and 0.54% Cu and 0.52 g/t Pt+Pd+Au over 47.0 metres and 0.82% Cu and 0.70 g/t Pt+Pd+Au over 15.5 metres at San Pablo (hole SP-02-01). For trench and drill results, the reader is referred to nine news releases filed under Virginia Energy on the SEDAR website between Jan. 19/01 and Dec. 20/02.
The Company also wishes to announce that it has negotiated a Shares-For-Debt Settlement in order to extinguish $136,181.26 of accounts payable with 6 of the Company's arm's length creditors, subject to regulatory approval, by the issuance of 2,723,625 common shares at a deemed value of $0.05 per share and 2,723,625 2-year, non-transferable Share Purchase Warrants exercisable at $0.10 in year 1 and $0.20 in year 2. Subject to the conclusion of the initial 4-month hold period, both on the shares and the warrants, the remaining expiry period of the Share Purchase Warrants may be reduced, upon notice to warrant holders and at the election of the Company, if the shares trade at a weighted average price equal to or greater than $0.40 per share for 10 consecutive trading days. If this condition is met and the Company so elects, the exercise period of the warrants will be reduced to 25 business days from the date notice is provided by the Company to the warrant holders.
The Qualified Person under Canada's National Securities Instrument 43-101 responsible for the content of this news release is the Company President and CEO, J. R. Allan, P. Geol.
On Behalf of the Board of Directors of
SKEENA RESOURCES LIMITED
J. R. Allan, P. Geol., President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contact: Tony Perri - Investor Relations, Manager at 604-684-8725
Or Raju Wani of Wani Capital at 403-240-0555
Suite 611, 675 W. Hastings St. Vancouver, B.C., Canada V6B 1N2
Tel: (604) 684-8725 Fax: (604) 669-2543 Email: email@example.com
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