Silver Quest Resources Ltd. (CVE:SQI) (PINK:SQIFF) stock is starting to trade thin as traders are getting bored of small scale fluctuations.
SQI added roughly 25.8% on Monday and sticks to the gains for the third consecutive trading session. The trading volume has decreased dramatically by now as traders aren’t getting enough space to speculate since the company now has a very strict market value set for them.
The stock price won’t go up or down more because of the recently surfaced agreement with New Gold Inc. (TSE:NGD) (AMEX:NGD) under which the company will be sold through a plan of arrangement. Silver Quest’s shareholders should receive 0.09 NGD share for each SQI common share they hold. Such an offer puts a $1.32 per share value on SQI stock. The whole deal is valued at $131 million.[BANNER]
The company will be merged into a spin-off business entity called McIntyre Minerals. Investors can get one share of McIntyre for every three shares of Silver Quest. NewGold will have a 9.9% ownership of this new company.
SQI is being bought for their Davidson property in the Blackwater project, of which the company owns 25%. Newgold already owns the remaining 75% of this property. Additionally, Newgold will get Cappose project owned by Silver Quest.
