Skeena Resources wins legal battle over Eskay Creek mine material By Investing.com

VANCOUVER – Skeena Resources Limited (TSX:SKE)(NYSE:SKE) has announced a legal victory as the British Columbia Court of Appeal reversed previous decisions regarding ownership of waste rock and tailings from the Eskay Creek Mine.

The Court found that Skeena did not relinquish its rights to the material, contradicting the former Chief Gold Commissioner’s ruling and a subsequent Supreme Court of British Columbia decision.

The dispute centered on the Eskay Creek Material, which had been placed in the Albino Lake Storage Facility. The former Chief Gold Commissioner had declared Richard Mill, backed by a 2017 mineral claim grant, as the owner of the material.

However, the Court of Appeal determined that the Province had no rights to the Eskay Creek Material when it granted the mineral claim to Mill, thus could not transfer ownership to him.

With the overturning of the prior rulings, the case will return to the current Chief Gold Commissioner for a new hearing and assessment based on the appellate court’s findings.

Walter Coles, Executive Chairman of Skeena, expressed satisfaction with the Court of Appeal’s decision, emphasizing the company’s belief that the former Chief Gold Commissioner had erred in the original ownership determination. Skeena Resources will await the Chief Gold Commissioner’s fresh verdict on the matter and plans to provide updates as they become available.

The Eskay Creek Material in question is not included in the company’s Resource or Reserve Statements nor in the November 2023 Definitive Feasibility Study for the Eskay Creek Project.

Skeena, a gold developer, is advancing the Eskay Creek Gold-Silver Project in British Columbia’s Golden Triangle. The company prides itself on sustainable practices and its partnership with the Tahltan First Nation, aiming to deliver sustainable growth and long-term value to stakeholders.

This news is based on a press release statement from Skeena Resources Limited.

InvestingPro Insights

In light of Skeena Resources Limited’s recent legal victory, investors may be curious about the company’s financial health and market performance. According to InvestingPro data, Skeena has a market capitalization of approximately $625.32 million USD. Despite the challenges faced, the company has demonstrated significant resilience in the market, with an impressive one-week price total return of 8.01% and a notable one-month price total return of 25.81%. This recent uptrend is a positive sign for stakeholders who have weathered the stock’s volatility.

However, Skeena Resources is currently trading at a high Price/Book multiple of 8.39, which suggests that the stock may be valued richly relative to its book value. This metric, coupled with the fact that the company has not been profitable over the last twelve months, reflects some of the financial risks associated with the investment. Yet, it’s worth noting that Skeena’s liquid assets exceed its short-term obligations, indicating the company has a buffer to manage its financial commitments in the near term.

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