Business
Seabridge Gold Secures $14.1 Million Private Placement
Toronto, Ontario--(Newsfile Corp. - April 1, 2020) - Seabridge Gold Inc. (TSX: SEA) (NYSE: SA)...
About this update from Seabridge Gold Inc
[{"type":"text","content":"Seabridge Gold Secures $14.1 Million Private PlacementToronto, Ontario--(Newsfile Corp. - April 1, 2020) - Seabridge Gold Inc. (TSX: SEA) (NYSE: SA) (the \"Company\" or \"Seabridge\") announced today that it has secured a non-brokered private placement from an existing shareholder for 1.2 million common shares of the Company at a price of $11.75 per share for gross proceeds of $14,100,000. No commissions are payable on this transaction. The private placement is expected to close on or about April 16, 2020 and is subject to customary closing conditions including, but not limited to, the approval of the TSX and the NYSE. The financing is being made by way of private placement in Canada and the issued shares will be subject to a four-month hold period in Canada. Seabridge has granted the private placee an option to increase the size of the private placement by an additional 240,000 common shares exercisable until May 15, 2020. The main use of proceeds is to make deposits to the Canada Revenue Agency (CRA) which cover potential tax liabilities stemming from re-assessments of its Canadian Exploration Expenses by the CRA as disclosed in the Company's 2018 and 2019 financial statements. Making the deposits enables Seabridge to proceed with its legal challenge of the CRA. Chairman and CEO Rudi Fronk said: \"We have an obligation to reimburse the investors who purchased our flow-through shares and are now going to be subject to re-assessment by the CRA. We intend to honor our obligation to our investors and with this financing we have raised the funds needed to do so without affecting the business of the Company.\" Mr. Fronk noted that the CRA had recently re-assessed Seabridge for an expected $2.15 million and that a re-assessment of flow-through investors for an aggregate of $11.8 million of tax was also expected, all as previously disclosed. \"CRA decisions can be appealed to the courts and we intend to do so. We, and our advisors, are very confident that the Canadian Exploration Expense which the CRA has disallowed meets the requirements of the relevant statutes. Moreover, we believe the disallowed expenditures were accrued by us in a manner consistent with similar expenditures accepted by the CRA in previous audits,\" Fronk said. The total potential tax reassessments for which Seabridge is liable, if the CRA's position is fully uphe...