Canadian junior Skeena Resources on Wednesday announced a binding agreement to buy British Columbia-based QuestEx Gold and Copper, which will add about 74 000 ha to the company’s landholding in the Golden Triangle.
At the same time, Skeena announced that when the acquisition was completed, it would vent certain properties to major Newmont, which is buying land to protect land for the Tahltan Nation and the Iskut community.
Once these transactions had been completed, Skeena’s land package would increase nearly sevenfold to 84 889 ha.
“We are excited to announce these transactions, which will add over 74 000 ha to Skeena’s land holdings and give us one of the largest land positions held for mining in the prolific Golden Triangle,” commented Skeena president and CEO Walter Coles.
He explained that involving Newmont on these transactions had allowed Skeena to acquire these strategically important land packages while minimising share dilution.
Skeena would pay C$0.65 in cash and 0.0367 of a common share in capital for each QuestEx share, representing C$48.6-million, or about C$1.20 a share. For the Newmont transaction, Skeena would receive about C$27-million, which would be sufficient to cover the cash portion of the consideration that it has to pay QuestEx. The net arrangement consideration (after subtracting the QEX shares already owned by Skeena and Newmont) would be payable through the issuance of C$15-million in Skeena shares.
The QuestEx transaction provides opportunities for exploration synergies, as the KSP and Kingpin properties were in close proximity to Skeena’s Eskay Creek and Snip projects.
Meanwhile, Newmont explained that it would work in collaboration with the Tahltan Nation, the Iskut community and the British Columbia government to make available portions of the acquired properties to support the land use planning objectives of the Tahltan Nation and the Iskut community.
“We are committed to developing a world class mining jurisdiction in the region, which includes sustainable resource development while protecting and conserving lands under the Tahltan Stewardship Initiative that are important to the Tahltan Nation and the Iskut community,” said Newmont president and CEO Tom Palmer.
“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.”
Newmont would make available the North ROK and Coyote properties for the Tahltan Stewardship Initiative as part of a continual effort to build a respectful and mutually beneficial relationship with the Tahltan Nation and Iskut community.
In 2021, Newmont acquired the Saddle North deposit through the acquisition of GT Gold. At the time of acquisition, the company recognised and continued to acknowledge the need for Tahltan consent to advance the project.