By Adriano Marchese

 

QuestEx Gold & Copper Ltd. said Wednesday that Skeena Resources Ltd. will buy all of its outstanding and issued shares in a transaction valued at around 56.5 million Canadian dollars, or US$45.2 million, and sell its newly-acquired properties in turn to Newmont Corp.

The Vancouver-based mineral exploration company said that each share that Skeena doesn't currently own will be exchanged for C$0.65 each, plus 0.0367 of a Skeena share.

QuestEx said that based on the preceding five-day volume-weighed average price of Skeena, the cash and stock deal implies a price of C$1.20 per QuestEx share. Skeena already owned around 14% of QuestEx' outstanding common shares.

On Tuesday, QuestEx shares closed at C$0.76.

Concurrently, Skeena entered into an asset purchase agreement with Newmont whereby Newmont will acquire the properties of Castle, Coyote, Heart Peaks, Moat and North ROK in British Columbia following the transaction for C$27 million.

Newmont is also a shareholder in QuestEx, with an ownership of 16.13%, according to FactSet.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

March 30, 2022 08:17 ET (12:17 GMT)

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