4 December 2020
Seabridge Gold Inc. announced today it has agreed to purchase from Pretium Resources Inc. ("Pretivm") the Snowfield Property which 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), is being 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. Seabridge plans to obtain financing for the Cash Payment, and the acquisition is contingent on Seabridge obtaining that financing.
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.”