Source: Seabridge Gold
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  • Seabridge Gold (SEA) subsidiary, KSM Mining ULC (KSMCo) has agreed to sell a secured note for US$225 million to Sprott Resource Streaming and Royalty Corp. and Ontario Teachers’ Pension Plan
  • The note bears interest at 6.5 per cent per annum
  • Upon maturity, the note will be exchanged for a silver royalty on the KSM project in northern B.C.
  • The transaction is expected to close on or about March 15, 2022
  • Seabridge Gold Inc. (SEA) opened trading at C$21.14 per share

Seabridge Gold (SEA) subsidiary, KSM Mining ULC (KSMCo) has agreed to sell a secured note for US$225 million.

The note was sold to Sprott Resource Streaming and Royalty Corp. and Ontario Teachers’ Pension Plan and is to be exchanged at maturity for a silver royalty on its KSM project located in northern British Columbia.

The proceeds of the sale will be used to continue ongoing physical work at the KSM project.

When the note matures, the investors will use all of the principal amount repaid on maturity to purchase a 60 per cent gross silver royalty. The note bears interest at 6.5 per cent per annum, payable quarterly in arrears. KSMCo can elect to satisfy interest payments in cash or by delivering Seabridge common shares.

Rudi Fronk, Seabridge’s Chairman and CEO, commented on the news.

“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.”

“We are planning on staying well ahead of the deadline by getting the work done as early as we can,” said Fronk. “This financing provides most of the capital necessary to reach this objective as well as having the added advantage of cutting time from the construction schedule once a construction decision has been made.”

The transaction is expected to close on or about March 15, 2022. Seabridge Gold is a development stage company involved in the evaluation, acquisition, exploration, and development of gold properties in North America.

Seabridge Gold Inc. (SEA) opened trading at C$21.14 per share.

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