RE:Can Skeena vote?
Frankly I don’t know whether or not Skeena is allowed to vote its shares, I have not investigated to determine. Although I am guessing, I rather suspect they are not – as I presume there is some principle of protection for the other minority shareholders in this process.
If I am right, that protection may even extend to Newmont and its shares in QEX; as I believe Newmont’s agreement with Skeena, to purchase Castle…. from Skeena, transacts almost simultaneously with Skeena’s purchase of QEX – if that is the case, then I would expect Newmont too would be seen to be in a potentially beneficial position akin to Skeena.
If both Skeena and Newmont can’t vote their shares in QEX, I believe that amounts to a total of a little over 30% of QEX’s shares that would be disqualified from voting. This in turn would significantly lessen the absolute number of ‘No Votes’ required to defeat these purchases.
Regarding QEX SP, I expect you noticed in the initial announcement of the buy-out (or whatever it’s called) that the total agreement price, valued each QEX share at approximately $1.20 (Cash $0.65 + 0.0367 Skeena Share). I expect you have noted that QEX’s current SP is about $1.00 – significantly less than $1.20, or even the $1.13 that it reached initially. I suspect this is largely due to the fact Skeena’s share price has dropped about 30% since the deal was announced – therefore the current value of the Skeena shares we would each receive is far less today than it was when the deal was announced – obviously not good for us.
So then the question: Why has Skeena’s SP dropped 30%? There could be many different reasons, or a combination thereof. I am really not up to speed regarding SKE, and generally have thought pretty highly of them. But there is one reason we should all be aware of, if we are to become SKE shareholders – that is a current legal issue they are dealing with about who owns what mineral rights in part of their pre-existing lands (I don’t know much about this matter, although it does appear it may have some potential significant impact).
In these posts we haven’t talked about QEX’s real potential value – and all I will say is DYODD!!!!! I accept there is always risk, especially until all the assays are assessed and development plans finalized – and I realize we can make a profit at this price – but simply put, to sell all the rights to QEX’s potential for ~$40M falls well short!
GT Gold sold (to Newmont) for $456M, and our Castle/Moat starts ~100m away, and Newmont apparently needs a potential Tailing area that we can provide. And Newmont probably wants/needs some of our other land (e.g. Coyote/North Roc) to provide park property to the Tahltan Nation, let alone the reasonably expected yet to be properly explored minerals located within Castle – PLUS – the recent very positive discoveries in KSP, including the ‘about now to be published’ promised 43-101 on Inel, plus a number more very strong targets in KSP yet to be properly explored.
And to think, we would only be getting about ~$40M value for all of QEX, while Newmont pays about ~$27M and Skeena gets to keep all the rest for about $13M (based on their SP today).
If I was working for either Skeena, or Newmont, on these deals, and if I could pull this off, I would be expecting a hefty bonus!
So, the real question I ask is: why the hell are we doing it now at such a low price?
IMHO DYODD