QuestEx Gold & Copper Ltd. QEXGF

Interesting Dynamic

[HornbyBay]

I could be wrong -- but it appears to me that Skeena became involved because they want Questex to drill targets at KSP that could help Skeena with interpretations for Eskay Creek.  Also, if such drilling comes back positive, Skeena will potentially want to purchase such KSP targets to expand its resources.  Ideally, I would think Skeena wants the KSP drilling before Questex drills at Castle.  Newmont, on the other hand, most likely wants to prioritize the Castle (especially Moat).  

At this point, I think the interests of Questex and its shareholders probably line up more with Skeena ... which is probably why this deal with Skeena was entered.  IMO, it was very shrewd by Questex management.  By acquiring GTT based on Tatogga, Newmont tipped its hand that it probably wants Castle (if not all of Questex).  However, the Newmont BOD probably can't justify a purchase of Questex without drill results at Castle.  And, if Questex drills elsewhere such as KSP and/or Sofia and expands its defined resources, Questex will increase the purchase price of a possible Newmont buyout.  Bottom line ... I'm glad Skeena is now involved ... because I think it could help Questex shareholders get a much higher overall return. 

Disclosure:  I own shares of Questex, just my opinions, not investment advice.