SA - Seabridge to raise $150M in KSM net smelter royalty agreement with Sprott

2023-05-11 09:54:20 ET

Seabridge Gold ( NYSE: SA ) said Thursday it reached a royalty agreement in which Sprott Resource Streaming pays US$150M to Seabridge's KSM Mining subsidiary, which grants Sprott a 1.2% net smelter royalty on the KSM project in British Columbia.

Seabridge ( SA ) said the proceeds will be used to complete the physical works at KSM, for which it expects to achieve a "substantially started" designation from the B.C. government.

The company said the new funding will allow it 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.

"This new US$150M in financing, coupled with the US$225M we raised from Sprott and Ontario Teachers' Pension Plan last year, provide the capital we believe is needed to achieve substantially started status well before July 2026," Seabridge ( SA ) Chairman and CEO Rudi Fronk said.

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