- Seabridge Gold (SEA) has completed its purchase of the Snowfield property from Pretivm Resources for US$100 million (roughly C$128 million)
- In addition to the all-cash payment, Pretivm has also been granted a 1.5 per cent royalty on the property and is eligible to receive a further US$20 million (C$25.6 million) in contingent payments
- The property sits immediately next to Seabridge’s wholly owned KSM Project, which will be integrated with the Snowfield property
- A new Preliminary Feasibility Study (PFS) will now be completed for the two combined assets, which is expected to improve reserves and capital efficiency
- Seabridge Gold is currently up 6.28 per cent to C$25.56 per share
Seabridge Gold (SEA) has completed its purchase of the Snowfield property from Pretivm Resources for US$100 million (roughly C$128 million).
In addition to the all-cash payment, Vancouver-based Pretivm has also been granted a 1.5 per cent net smelter royalty on production from the property and is eligible to receive a future contingent payment of US$20 million (C$25.6 million), US$15 million (C$19.21 million) of which can be credited against further royalty payments.
This additional payment is payable within six months of Seabridge either beginning commercial production at the Snowfield property or announcing a bankable feasibility study.
Located in northeast British Columbia, immediately next to Seabridge’s wholly owned KSM copper-gold project, the Snowfield property hosts hosts a measured and indicated mineral resource of 25.9 million ounces of gold, along with a further 9 million ounces in the inferred category.
Rudi Fronk, Chairman and CEO of Seabridge Gold, said the acquisition brings a number of major benefits.
“First, it adds appreciably to our ounces of gold per share, our most important measure of shareholder value, at a cost of approximately US$3.00 (C$3.82) per ounce.”
“Second, Snowfield’s measured and indicated mineral resources have the potential to significantly increase KSM’s proven and probable reserves,” he added.
Work is now underway to determine how the Snowfield property might be integrated with the KSM Project’s mine plan.
Seabridge’s current environmental approvals include haul roads through the Snowfield property, which the company said may allow it to expedite development and access some of the property’s best grade material early in the mining process.
A new Preliminary Feasibility Study (PFS) will be completed for the combined assets, which is expected to increase project reserves and improve capital efficiency by extending the life of open-pit mining.
This, today’s announcement said, would allow the company to delay the capital-intensive development of underground mining to later in the project’s life.
Seabridge Gold is currently up 6.28 per cent to C$25.56 per share at 10:00am EST.
