Seabridge secures US$100 million loan for B.C. gold project
Seabridge Gold Inc. [SEA-TSX, SA-NYSE] said it has executed an unsecured, short-term loan agreement with a strategic investor for up to US$100 million to support ongoing activities at the company’s KSM project in northwestern British Columbia.
“We are pleased to secure financing to support the significant investments we are making in our summer season work programs at our 100%-owned KSM Project,’’ Seabridge Chair and CEO Rudi Fronk. “Our 2026 work programs at KSM include building of roads to provide improved access to future infrastructure areas and the collection of geotechnical, metallurgical, and environmental data from drilling, test pitting and sampling required to support KSM’s feasibility level design and engineering activities,’’ he said.
The loan is drawable at the company’s election in minimum calls of US$10 million each, has an interest rate of 7.0% compounded monthly, and is capitalized and matures on December 31, 2026. The loan is repayable either in cash at any time or, in certain circumstances and subject to TSX approval, in common shares of Seabridge if outstanding at maturity, at the company’s option. The loan includes customary conditions, representations, warranties, and covenants. The company said it intends to draw on the loan, if required, to strengthen its consolidated liquidity position. No amounts are currently drawn on the loan.
On Monday, Seabridge shares edged up 0.84% or 29 cents to $34.76. The shares trade in a 52-week range of $54.29 and $20.86.
Seabridge Gold holds a 100% interest in several North American gold resource projects. The company’s principal assets are the KSM and Iskut properties near Stewart, B.C., and the Courageous Lake gold project in the Northwest Territories. KSM is one of the world’s largest undeveloped gold projects as measured by reserves. It is estimated to contain 47.3 million ounces of gold and 7.3 billion pounds of coper in proven and probable reserves.
Earlier this year, the company announced an updated mineral resource estimates for its KSM project, a move that reflected the gains from the application of updated metal price parameters and operating costs.
The company said measured and indicated mineral resources have increased by 6.8 million ounces of gold, 1.5 billion pounds of copper, 42.7 million ounces of silver and 93 million pounds of molybdenum compared to the last resource estimate update in January 2024.
Measured and indicated resources now stand at 95.5 million ounces of gold, 21.1 billion pounds of copper, 459.9 million ounces of silver and 837 million pounds of molybdenum.
The company also said inferred resources have increased by 12.9 million ounces of gold, 4.2 billion pounds of copper, 108.8 million ounces of silver and 140 million pounds of molybdenum compared to the previous 2024 update.
Total inferred resources now stand at 84.4 million ounces of gold, 42.7 billion pounds of copper, 570 million ounces of silver and 606 million pounds of molybdenum.