Business
Seabridge Closes US$225 Million Financing with Sprott and Ontario Teachers'
Toronto, Ontario--(Newsfile Corp. - March 24, 2022) - Seabridge Gold (TSX: SEA) (NYSE: SA) ann...
About this update from Seabridge Gold Inc
[{"type":"text","content":"Seabridge Closes US$225 Million Financing with Sprott and Ontario Teachers'Toronto, Ontario--(Newsfile Corp. - March 24, 2022) - Seabridge Gold (TSX: SEA) (NYSE: SA) announced today that its wholly-owned subsidiary, KSM Mining ULC (\"KSMCo\") has completed the sale of a secured note (\"Note\") to be exchanged at maturity for a 60% gross 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. 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'. For details on the terms of the Note please see February 26th news release.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.\"Work is already underway on these objectives using the winterized camp facilities installed last year. A larger complement of engineering and construction personnel has been engaged to undertake a much expanded work program for this year and next.\"We are delighted to have Sprott and Ontario Teachers' as partners at KSM. Although KSM is best known for its mineral reserves and resources of gold and copper, the project also hosts a large inventory of silver. In KSM's latest Technical Report, silver accounts for less than 3% of projected KSM revenues, with the transaction representing a very small charge against the project's future total revenues. Furthermore, the transaction does not require share dilution which furthers our long-standing strategy of providing the industry's best leverage to gold as measured by ounces of gold per share,\" said Fronk.Michael ...