Seabridge Gold raising up to US$75 million

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Seabridge Gold Inc. [SEA-TSX; SA-NYSE] said it has entered into a controlled equity offering sales agreement with Cantor Fitzgerald & Co., and B. Riley Securities Inc.

Under the agreement, Seabridge can sell a number of shares that would result in gross proceeds of US$75 million. Sales of the common shares, if any, will be made in “at the market distributions” as defined in National Instrument 44-102 – Shelf Distributions, directly on the New York Stock Exchange or any other existing trading market in the U.S.

No offers or sales of common shares will be made in Canada. The company said net proceeds, if any, will be used to advance non-flow through eligible exploration and development of the company’s projects potential future acquisitions, and for working capital and general corporate purposes.

Seabridge shares eased 2.4% or $0.61 to $24.70 in light trading. The shares are trading in a 52-week range of $29.00 and $7.37.

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 38.8 million ounces of gold and 10.2 billion pounds of copper in proven and probable reserves.

Back in early December, the company raised US$115.7 million from the sale of 6.7 million common shares at US$17.25 per share. It said proceeds from the share sale would be used to finance the purchase of the Snowfield property in northwestern British Columbia from Pretium Resources Inc. [PVG-TSX].

The project shares a common boundary with Seabridge’s KSM project and hosts a near-surface, low-grade, bulk tonnage porphyry-style gold deposit with gold-copper, molybdenum and rhenium mineralization.

Under the agreement with Seabridge, Pretium will receive US$100 million in cash, payable on closing and a 1.5% net smelter royalty on all production from Snowfield. Pretium will also receive a US$20 million contingent cash payment, payable within six months of the earlier of KSM Mining (or a parent company) completing a bankable feasibility study, which includes reserves from Snowfield, or the start of production from any part of Snowfield.

According to a February, 2011 estimate, Snowfield hosts a measured and indicated resource of 25.9 million ounces of gold, 75.8 million ounces of silver, 2.98 billion pounds of copper and 1.1 billion pounds of molybdenum, and 258.3 million pounds of rhenium.

Seabridge recently announced a deal to acquire a 100% interest in Golden Predator Mining Corp.’s [GPY-TSXV] 3 Aces gold project in the Yukon, Canada.

Seabridge Gold Chairman and CEO Rudi Fronk described the 3 Aces Project as a first-rate exploration play with the potential to host a high grade commercially-viable orebody.


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