Seabridge Gold raising US$100 million for projects in B.C.
Seabridge Gold Inc. [SEA-TSX, SA-NYSE] said it is aiming to raise US$100 million for projects in British Columbia including a bankable feasibility study at its KSM property.
That amount includes US$80 million from a bought deal financing consisting of 6.54 million shares priced at US$12.25 per offered share. The company said the underwriters will have an option to purchase up to an additional 15% of the offered shares at the issue price to cover overallotments, if any. That option can be exercised in whole or in part, at any time until 30 days after the closing of the offering, which is expected to occur on February 19, 2025.
Concurrent with the offering, Seabridge has entered into a subscription agreement with a strategic investor to purchase 1.64 million common shares on substantially the same terms as the offering, raising gross proceeds of US$20 million. Seabridge said it expects the offering and private placement to raise aggregate gross proceeds of approximately US$100 million, or the equivalent of $143 million.
Seabridge shares were active on the news easing 9.1% or $1.73 to $17.21. The shares trade in a 52-week range of $28.39 and $12.62.
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 copper in proven and probable reserves.
Seabridge has said it believes that the 3 Aces target is consistent with some of the biggest and richest gold deposits in the world, including the California mother lode belt, Juneau gold best and Muruntau in Uzbekistan and Obuasi in Ghana.
Meanwhile, Seabridge said proceeds from the latest round of financings will be used by the company to make payments to B.C. Hydro contracted for completion of the KSM switching station; complete a program to collect all remaining anticipated field data for, and undertake early value engineering to support a bankable KSM bankable feasibility study; finance other costs associated with ongoing activities at the company’s 100%-owned KSM gold-copper project in northeast British Columbia and for general corporate purposes.
“We have committed to approximately $150 million in work at our KSM project in 2025 to continue moving it forward and to maintain our commitment to our indigenous partners and local communities,’’ said Seabridge Chairman and CEO Rudi Fronk. “The work includes critical path items to position KSM for future partnership and establish a path of future work.’’