- Seabridge Gold (SEA) has raised US$115.7 million (roughly C$148 million) to facilitate its purchase of the Snowfield property in British Columbia
- The company issued 6.71 million common shares at a price of US$17.25 (C$22.09) each, which includes the exercise of an over-allotment option
- Pursuant to a December 4 announcement, Seabridge will purchase the Snowfield property from Pretivm Resources for US$100 million (C$128 million)
- 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
- Seabridge Gold is currently down 2.23 per cent to C$23.25 per share
Seabridge Gold (SEA) has raised US$115.7 million (roughly C$148 million) to facilitate its purchase of the Snowfield property in British Columbia.
Under the terms of the offering, the Toronto-based gold company issued a total of 6.71 million common shares at a price of US$17.25 (C$22.09) each. This includes an over-allotment option granted to the underwriters – Cantor Fitzgerald Canada, B. Riley Securities, Canaccord Genuity, Roth Capital Partners and Red Cloud Securities.
Pursuant to a December 4 announcement, Seabridge will purchase the Snowfield property from Pretivm Resources for US$100 million (C$128 million). 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 future production from the Snowfield property.
“We expect a large portion of the Snowfield mineral resource could be exploited in a combined operation, which could potentially improve KSM’s IRR and NPV projections as well as shortening the payback period of initial capital,” said Rudi Fronk, Chairman and CEO of Seabridge Gold.
“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,” he added.
Seabridge says the next step is to complete a new Preliminary Feasibility Study (PFS) for the KSM Project, which would include the Snowfield property.
The PFS is expected to 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.
Seabridge Gold is currently down 2.23 per cent to C$23.25 per share at 9:51am EST.