Business
RETRANSMISSION: Seabridge to Raise US$225 Million from Sprott and Ontario Teachers' under Note Exchangeable for a KSM Silver Royalty
Toronto, Ontario--(Newsfile Corp. - February 28, 2022) - Seabridge Gold (TSX: SEA) (NYSE: SA) ...
About this update from Seabridge Gold Inc
[{"type":"text","content":"RETRANSMISSION: Seabridge to Raise US$225 Million from Sprott and Ontario Teachers' under Note Exchangeable for a KSM Silver RoyaltyToronto, Ontario--(Newsfile Corp. - February 28, 2022) - Seabridge Gold (TSX: SEA) (NYSE: SA) announced today that its wholly-owned subsidiary, KSM Mining ULC (\"KSMCo\") has agreed to sell a secured note (\"Note\") that is to be exchanged at maturity for a silver royalty on its 100% owned KSM project located in northern British Columbia, Canada, to Sprott Resource Streaming and Royalty Corp. (\"Sprott\") and Ontario Teachers' Pension Plan (\"Ontario Teachers'\") (jointly, the \"Investors\") for US$225 million (approximately C$285 million at the current exchange rate). The proceeds of this sale will be used to continue ongoing physical works at KSM and advance the project towards a designation of 'substantially started'. Seabridge Chairman and CEO Rudi Fronk explained: \"This fund-raising is intended to move KSM towards accomplishing three main objectives without the requirement for shareholder dilution:Achieve the 'substantially started' designation which ensures the continuity of the KSM project's approved Environmental Assessment Certificate (\"EAC\") for the life of the project;Complete key tasks which support construction readiness and will shorten the construction period once a construction decision has been made; andEnhance the KSM proposition in our joint venture negotiations by securing the EAC, further de-risking the project, and accelerating the construction timetable.\"Key terms of the Note and silver royalty include: When the Note matures, the Investors will use all of the principal amount repaid on maturity to purchase a 60% gross silver royalty (the \"Silver Royalty\") upon the first to occur of: commercial production being achieved at KSM; andeither the 10-year anniversary, or, if the EAC expires and the Investors do not exercise their right to put the Note to KSMCo (described below), the 13-year anniversary of the issue date of the Note. Prior to its maturity, the Note bears interest at 6.5% per annum, payable quarterly in arrears. KSMCo can elect to satisfy interest payments in cash or by delivering Seabridge common shares.KSMCo has the option to buyback 50% of the Silver Royalty, once exchanged on or before 3 years after commercial production has been achieved, for an amount that ...