Skeena Questex Merger

Skeena is acquiring fellow Golden Triangle explorer Questex in a cash and share deal that values Questex at $48 million, according to the news release from Skeena announcing the deal. The offer is for 65 cents cash plus 0.0367 Skeena share for QEX share, which represents a 50% premium to the recent trading price.

This deal comes with an interesting twist. Newmont has agreed to pay $27 million as part of the closing price, an amount that neatly equates to the cash component in the offer. In return, Newmont will acquire the QEX shares in the area of its Saddle/Saddle North (“Saddle”) project. Newmont bought junior explorer GT Gold last year at a $450 million valuation to acquire Saddle.

The Newmont news release on the deal stated: “We are acquiring the land in an effort to address concerns raised by the Tahltan Nation. The mining claims around Iskut are not being purchased for development or their mineral potential.” The claims not around Iskut are adjacent to Saddle.

Skeena is acquiring the KSP and Kingpin properties, located near Skeena’s Eskay and Snip projects. The properties add 640 square kms to Skeena’s exploration ground in that area. Based on the closing price of Skeena’s shares on Friday, the value of that newly acquired exploration ground is $21 million.

Skeena has a current market value of $936 million.