NORTHERN BC – Skeena Resources Limited (TSX: SKE, NYSE: SKE) announced that it has completed the previously announced plan of arrangement to acquire all of the issued and outstanding shares of QuestEx Gold & Copper Ltd. Following the closing of the Arrangement, Skeena also completed the previously announced sale of certain QuestEx properties to an affiliate of Newmont Corporation (NYSE: NEM, TSX: NGT).
Walter Coles, CEO & Director of Skeena commented, “The acquisition of QuestEx positions Skeena with one of the largest land positions held for mining in the prolific Golden Triangle. We expect to realize exploration synergies at the KSP and Kingpin properties which are proximal to our Eskay Creek and Snip projects. We would like to thank the teams at Newmont and QuestEx for working together with us on these transactions and we would also like to thank the Tahltan Nation for their continued support. We look forward to exploring these exciting new tenements while we continue to advance Eskay Creek.”
Under the terms of the Arrangement, QuestEx shareholders received C$0.65 cash and 0.0367 of a Skeena common share for each QuestEx common share. In aggregate, under the Arrangement Skeena paid approximately C$18.7 million in cash and issued approximately 1.05 million Skeena Shares to QuestEx shareholders other than Newmont and Skeena. The cash consideration was fully funded by the cash proceeds of the Asset Sale to Newmont.
Under the terms of the Asset Sale, Newmont acquired 100 per cent of Skeena’s rights, titles, and interests in and to the Heart Peaks, Castle, Moat, Coyote, and North ROK properties, which were previously owned by QuestEx, in exchange for consideration of approximately C$26 million, including the purchase by Skeena of Newmont’s QuestEx shares.
