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Skeena Resources Announces Acquisition of QuestEx Gold & Copper Ltd. and Concurrent Sale of QuestEx Assets to Newmont Corporation
VANCOUVER, BC / ACCESSWIRE / March 30, 2022 / Skeena Resources Limited (TSX:SKE) (NYSE:SKE) ("Skeena" or "the Company") is pleased to announce that it has signe
About this update from Skeena Resources Limited
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / March 30, 2022 / Skeena Resources Limited (TSX:SKE) (NYSE:SKE) (\"Skeena\" or \"the Company\") is pleased to announce that it has signed a binding agreement with QuestEx Gold & Copper Ltd. (\"QuestEx\") whereby Skeena will acquire all of the issued and outstanding shares of QuestEx, pursuant to a plan of arrangement (the \"QuestEx Transaction\") for share and cash consideration. The consideration will consist of C$0.65 cash and 0.0367 of a common share in the capital of Skeena (each whole share, a \"Skeena Share\") for each one QuestEx common share (the \"Arrangement Consideration\"), representing total consideration of approximately C$48.6 million, or approximately C$1.20 per QuestEx share based on Skeena's 5-day VWAP ending March 29, 2022, on the TSX. Skeena has signed a concurrent binding agreement with Newmont Corporation (NEM),(NGT) (\"Newmont\") to vend certain QuestEx properties to Newmont via an asset purchase agreement (the \"Newmont Transaction\") on completion of the QuestEx Transaction for approximately C$27 million. The cash proceeds from the Newmont Transaction are expected to be sufficient to cover the cash portion of the aggregate Arrangement Consideration payable by Skeena. The net Arrangement Consideration (after subtracting the QEX shares already owned by Skeena and Newmont) will be payable through the issuance of approximately C$15 million in Skeena Shares. Skeena will also assume QuestEx's outstanding options and warrants. Benefits to Skeena: Expansive Land Package in BC's Prolific Golden Triangle: Following the closing of the QuestEx Transaction and the Newmont Transaction, Skeena's land package will increase nearly sevenfold, and the Company will (based on publicly available information) have one of the largest land positions held for mining in British Columbia's Golden Triangle, totalling 84,889 hectares. Exploration Synergies and Potential: The proximity of QuestEx's KSP and Kingpin properties to Skeena's Eskay Creek and Snip projects provides opportunities for exploration synergies. The Company believes that the combined portfolio offers significant exploration potential (refer to map at the end of this release). Minimal Dilution to Skeena Shareholders: The combination of cash and shares minimizes dilution to Skeena shareholders to less than 2%, while the cash component...