Seabridge Closes US$150 Million Note/NSR Agreement with Sprott Streaming

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[{"type":"text","content":"Seabridge Closes US$150 Million Note/NSR Agreement with Sprott StreamingFunds to be Used at KSM Towards Achieving 'Substantially Started' StatusToronto, Ontario--(Newsfile Corp. - June 29, 2023) - Seabridge Gold (TSX: SEA) (NYSE: SA) announced today that its wholly-owned subsidiary, KSM Mining ULC (\"KSMCo\"), has closed the sale of a US$150 million secured note to Sprott Resource Streaming and Royalty Corp. (\"Sprott Streaming\"). For commercial reasons beneficial to Seabridge, the transaction structure previously announced by Seabridge on May 11, 2023 has been restructured as a sale to Sprott Streaming of a secured note (\"Note\") by KSMCo, and a contingent right by Seabridge. The Note is designed to be repaid at maturity by a net smelter royalty (\"NSR\") on Seabridge's 100% owned KSM project located in northern British Columbia, Canada. The US$150 million (the \"Principal Amount\") in proceeds (approximately CAD$200 million at the current exchange rate) will be used to complete the physical works at KSM for which Seabridge expects to achieve a designation of 'substantially started' from the B.C. government. Essentially the same secured note/royalty structure was used last year to raise US$225 million from Sprott Streaming and the Ontario Teachers' Pension Plan to kick start the 'substantially started' program (the \"2022 Transaction\").Seabridge Chairman and CEO Rudi Fronk explained: \"This funding 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 shorten the construction period once a construction decision has been made; andEnhance the KSM proposition in our ongoing joint venture discussions by securing the EAC, further de-risking the project, and accelerating the construction timetable.\"Mr. Fronk noted that the new funding \"will enable us to complete the switching station and related work required for connecting KSM to BC Hydro's Northern Transmission Line for construction and operation of the mine. Access to this green energy will substantially enhance KSM's sustainability and carbon profile. Proceeds from the transa...

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