Published: June 27, 2022 |

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Canadian mining explorer Skeena Resources has agreed to acquire the mineral exploration company QuestEx Gold & Copper in a share and cash deal worth around C$48.6 million ($38 million).

Under the terms of the agreement, QuestEx shareholders will receive a consideration consisting C$0.65 ($0.5) cash and 0.0367 share in the Skeena common stock for each QuestEx common share held.

The gold and copper exploration company QuestEx is focused on the Golden Triangle and Toodoggone areas of British Columbia, Canada. It owns 100 percent stake in one of the largest portfolios of mineral tenures in the province‘s metal-rich Golden Triangle.

The acquisition is expected to provide exploration synergies to Skeena, as QuestEx’s KSP and Kingpin properties are located close to its Eskay Creek and Snip projects.

“We are excited to announce these transactions, which will add over 74,000 hectares to Skeena’s land holdings and give us one of the largest land positions held for mining in the prolific Golden Triangle. The KSP and Kingpin properties are proximal to our Eskay Creek and Snip projects and appear to have the same geological hallmarks that have hosted other large gold systems in the area,” said Skeena President and CEO Walter Coles.

“Involving Newmont on these transactions has allowed Skeena to acquire these strategically important land packages while minimizing share dilution. We are excited to explore these new mineral claims as we continue to advance Eskay Creek,” added Coles.

Simultaneously, Skeena has also signed an agreement with US-based gold mining company Newmont to sell certain QuestEx assets for C$27 million, after completing QuestEx acquisition.

Newmont will buy all of Skeena’s rights, titles, and interests, in the Heart Peaks, Castle, Moat, Coyote, and North ROK properties, that currently QuestEx owns.

The company intends to use the proceeds from the Newmont transaction to cover the cash portion of the aggregate consideration it has to be paid.

The QuestEx transaction and Newmont transaction are expected to be closed by June this year, subject to customary closing conditions including regulatory approvals and QuestEx shareholders approval.

Upon closing of the transactions, QuestEx shareholders, excluding Skeena and Newmont, are expected to own around 1.5 percent of Skeena common shares, on a pro forma basis.

Source: NS Energy

About Skeena Resources
Skeena Resources Limited explores and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100 percent interests in the Snip gold mine comprising one mining lease and eight mineral claims that covers an area of approximately 4,546 hectares; and the Eskay Creek gold mine covering an area of approximately 6,151 hectares located in British Columbia, Canada. Skeena Resources Limited was incorporated in 1979 and is headquartered in Vancouver, Canada.

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