Business
Seabridge Gold Completes Acquisition of Snowfield Property from Pretivm
Purchase adds 25.9 million oz of M&I gold resources adjacent to flagship KSM Project Work begins on Snowfield-KSM integration expected to further improve econom
About this update from Seabridge Gold Inc
[{"type":"text","content":" Purchase adds 25.9 million oz of M&I gold resources adjacent to flagship KSM Project Work begins on Snowfield-KSM integration expected to further improve economic projections Toronto, Ontario--(Newsfile Corp. - December 17, 2020) - Seabridge Gold Inc. (TSX: SEA) (NYSE: SA) (\"Seabridge\" or the \"Company\") announced today it has closed its previously announced acquisition of the Snowfield Property from Pretium Resources Inc. (\"Pretivm\"). The Snowfield Property hosts a large gold resource immediately adjacent to Seabridge's 100%-owned KSM gold-copper project in northeast British Columbia, Canada. The acquisition enables exciting new development opportunities for KSM which could have a significant positive impact on project economics. The Snowfield Property, located in the same valley that hosts KSM's Mitchell Deposit (see attached map), was purchased from Pretivm for US$100 million (the \"Cash Payment\"), a 1.5% net smelter royalty (NSR) on Snowfield Property production and a future contingent payment of US$20 million of which US$15 million can be credited against future royalty payments. Cantor Fitzgerald Canada Corporation acted as financial advisor to Seabridge on the acquisition. Seabridge Chairman and CEO Rudi Fronk said: \"This acquisition brings Seabridge a number of major benefits. First, it adds appreciably to our ounces of gold per share, our most important measure of shareholder value, at a cost of approximately US$3 per oz. Second, Snowfield's measured and indicated mineral resources have the potential to significantly increase KSM's proven and probable reserves. Snowfield's mineral resource is 25.9 million ounces of gold in the measured and indicated category and a further 9.0 million ounces in the inferred category as well as substantial copper resources (see table below). The estimated strip ratio for Snowfield deposit is less than one-to-one and previous studies indicate its resources can be successfully blended with Mitchell ore.\" \"Work is already underway to determine how to integrate Snowfield into a new KSM mine plan. 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. Our current environmental approvals include haul roads throu...