Skye Resources Inc. announced on February 21, 2006 that it had closed the private placement previously announced on February 2, 2006 of 5,885,000 common shares at a price of $4.25 per share for aggregate gross proceeds of approximately $25 million.
A syndicate of underwriters led by Paradigm Capital Inc. and including BMO Nesbitt Burns Inc., Desjardins Securities Inc. and Orion Securities Inc., underwrote the private placement.
The net proceeds of the offering will be used for exploration drilling at Skye's Fenix nickel laterite project in Guatemala, environmental and community relations expenditures, basic engineering, land purchases, early establishment of the owner's project management team and other expenses to permit implementation of the Fenix Project following completion of the feasibility study, a preliminary assessment for hydrometallurgical expansion and general working capital including project financing costs.
Skye is an international mining company focused on becoming a new mid-tier nickel producer. The Company acquired the rights to the Fenix Project in December 2004 and is currently undertaking a feasibility study for a 50 million pound per year ferro-nickel operation using proven conventional smelting technology.
Skye Resources was advised by a team from Fasken Martineau including Michael Bourassa, Aaron Atkinson, Jamie Pennell and Georges Dubé.