4 December 2020
Seabridge Gold Inc. announced today it has entered into an agreement with Cantor Fitzgerald Canada Corporation, as lead underwriter and sole book-runner on behalf of itself and a syndicate of underwriters, to purchase, on a bought deal basis, 6,100,000 common shares of the Company at the price of US$17.25 per Offered Share for aggregate gross proceeds of approximately US$105 million.
In addition, Seabridge has agreed to grant to the Underwriters an over-allotment option exercisable, in whole or in part, in the sole discretion of the Underwriters, to purchase up to an additional 610,000 common shares (representing 10% of the total number of common shares comprised in the Offering) at the Issue Price for a period of up to 30 days after the closing of the Offering for potential gross proceeds of up to approximately US$10.5 million. The Company has agreed to pay the Underwriters a cash commission equal to 4.0% of the gross proceeds of the Offering, including proceeds received from the exercise of the over-allotment option.
The Offering is expected to close on or about December 9, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”). The net proceeds of the Offering will be used by the Company to fund the purchase from Pretivm Resources Inc. of the Snowfield Property which was announced today by way of a separate press release. The Offering proceeds will pay the entire US$100 million up front cash payment payable in respect of the acquisition of the Snowfield Property, the expenses related to the acquisition of the Snowfield Property and any surplus funds will be used for general working capital. T he Snowfield Property hosts a large gold deposit immediately adjacent to Seabridge’s 100%-owned KSM gold-copper project in northeast British Columbia, Canada. Cantor Fitzgerald Canada Corporation acted as financial advisor to Seabridge on the acquisition.