Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum QuestEx Gold & Copper Ltd. QEXGF

QuestEx Gold & Copper Ltd is engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in the Golden Triangle and the Toodoggone area of British Columbia, Canada. The exploration projects include Castle, KSP, North ROK, Kingpin, Sofia, and others.

OTCQX:QEXGF - Post Discussion

View:
Post by jfan22 on Apr 01, 2022 12:44pm

Takeover

After listening to Skeena's Walter Coles give this interview my thoughts on the deal have done a 180:

 https://www.kereport.com/2022/03/31/skeena-resources-recapping-the-acquisition-of-questex-gold-copper-ltd-and-concurrent-sale-of-questex-assets-to-newmont/

He basically lays out that he thinks someone will buy QEX's tooddogone properties for $10-20M off of Skeena and that KSP/Inel/Kingpin will be essentially free to Skeena after this deal. I don't believe Walter throws numbers like this out without testing the waters and entering into preliminary discussions to sell Sofia. At worst KSP/Kingpin bought for only $10M, which seems low considering Inel is about to have a maiden resource.

That means that QEX in it's current state is definitely worth north of $1.2/share and that there are currently buyers for all 3 major land packages that QEX owns (Castle package, Sofia package and KSP/Kingpin). QEX is not a distressed company with assets no one wants and this deal proves that there is significant interest. This deal should be a wake up call to the market that QEX has been seriously undervalued on the open market and without further exploration it is worth more than $48.6M to buyers.

If shareholders vote against this deal there should be opportunities to create significantly more value. The only way that wouldn't be true is if management is incompetent. If Skeena can turn a profit buying at $48.6M and selling the parts, our management should be able to push it above that market cap through exploration and asset sales.

Based on section 12 of shareholder rights summary, there needs to be 90% approval of a buyout. The big players in this deal own less than 50% so retail has the final say on this deal.

https://questex.ca/site/assets/files/4254/qex-shareholder-rights-summary.pdf
Comment by jfan22 on Apr 01, 2022 12:49pm
After posting this I think it's worth saying that I own Skeena and QEX shares and have been a longtime supporter of both companies. I am comfortable owning more Skeena shares and taking profit on QEX but it is my personal opinion that this deal is not the best way to create shareholder value for QEX shareholders.
Comment by jcw604 on Apr 05, 2022 1:35pm
If theacquiring Corporationelects to proceed byway of takeover bid but fails toacquire the requisite percentageofthesharestopermitacompulsoryacquisitionoftheminority,theCorporationmayelectto squeeze out the minority through an alternative statutory process if it acquires a certain threshold percentageoftheCorporationsissuedandoutstandingshares.
Comment by jcw604 on Apr 11, 2022 9:01am
Checked the squeeze process. They just need to hold a special meeting with 2/3 approval and because of this provision, the real requirement is only 2/3.
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities