QuestEx Gold & Copper Ltd. (“QuestEx” or the “Company”) (TSXV: QEX) has announced that it has entered into a definitive arrangement agreement with Skeena Resources Limited (“Skeena”) (TSX:SKE) pursuant to which Skeena will acquire QuestEx (the “Transaction”) at a price of $0.65 cash plus 0.0367 of a Skeena common share for every QuestEx common share, implying total consideration of $1.20 per share (the “Consideration”).
The Consideration represents a 58% premium to QuestEx’s last closing price prior to the announcement of the Transaction and implies an equity value of approximately $56.5 million on a 100% and fully-diluted basis.
QuestEx holds one of the largest portfolios of mineral tenures in British Columbia’s metal-rich Golden Triangle. The portfolio is surrounded by some of the most important past and current mining and development projects in British Columbia, including Eskay Creek and Snip (Skeena), Saddle (Newmont), Brucejack (Newcrest) and KSM (Seabridge).
Concurrent with the Transaction, Newmont Corporation has entered into an asset purchase agreement with Skeena to acquire QuestEx’s Heart Peaks, Castle/Moat and North ROK/Coyote properties upon closing of the Transaction for approximately $27.0 million.
The Transaction offers QuestEx shareholders a significant up-front premium, liquidity upon closing, and ongoing exposure to the Golden Triangle region in British Columbia.
Fort Capital acted as financial advisor to QuestEx with respect to the Transaction and provided a fairness opinion to the Board of Directors of the Company.