Seabridge Mining - Chairman and CEO, Rudi Fronk
Chairman and CEO, Rudi Fronk
Source: Mining Journal
  • Seabridge Gold (SEA) has signed a deal with Pretivm Resources to buy its Snowfield property for US$100 million (roughly C$128 million)
  • Located in northeast British Columbia, the property sits immediately next to Seabridge’s wholly owned KSM Project and hosts a measured and indicated mineral resource of 25.9 million ounces of gold
  • Pretivm will retain a 1.5 per cent royalty on production from the property and is eligible for future contingent payments of US$20 million (C$25.6 million)
  • To facilitate the purchase, Seabridge has also launched a bought deal offering to raise US$105 million (C$134 million) by issuing 6.1 million common shares at a price of US$17.25 (C$22.09) each
  • Seabridge Gold is currently down 8.21 per cent to C$22.92 per share

Seabridge Gold (SEA) has signed a deal with Pretivm Resources to buy its Snowfield property for US$100 million (roughly C$128 million).

Located in northeast British Columbia, the property sits immediately next to Seabridge’s wholly owned KSM copper-gold project and hosts a measured and indicated mineral resource of 25.9 million ounces of gold.

In addition to the cash payment, Pretivm will retain a 1.5 per cent net smelter royalty on production from the Snowfield property.

Pretivm is also is eligible to receive a further US$20 million (C$25.6 million) in conditional payments within six months of either commencing commercial production or the announcement by Seabridge of a bankable feasibility study.

US$15 million (C$19.21 million) of the conditional payments will be offset against amounts payable pursuant to the 1.5 per cent royalty. Seabridge will also have the right of first refusal to purchase the royalty should Pretivm decide to sell it.

According to today’s announcement, work is already underway to determine how the Snowfield property can be integrated into a new mine plan for the KSM Project.

“Our current environmental approvals include haul roads through the Snowfield property which may allow us to expedite its development and access some of its best grade material early in the mining process,” said Rudi Fronk, Chairman and CEO of Seabridge Gold.

“The next step is to generate additional data that is necessary to complete a new Preliminary Feasibility Study for the KSM Project which includes the Snowfield property,” he added.

Seabridge said it believes the PFS will increase project reserves and improve capital efficiency by extending the life of open pit mining operations, thereby allowing the company to delay the capital-intensive development of underground mining to a later date.

To facilitate the purchase, Seabridge has also signed an agreement with Cantor Fitzgerald Canada, as lead underwriter and sole book-runner of a bought deal offering, to raise US$105 million (C$134 million) by issuing 6.1 million common shares at a price of US$17.25 (C$22.09) each.

Seabridge Gold is currently down 8.21 per cent to C$22.92 per share at 10:08am EST.

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