Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
| KSM project, B.C. Image credit: Seabridge Gold. |
(Wallace Refiners) – Seabridge Gold (TSX:SEA) (NYSE:SA) announced today it has entered into an agreement a syndicate of underwriters lead by Cantor Fitzgerald Canada to purchase, on a bought deal basis, 6,100,000 common shares of the company at the price of US$17.25 per 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 to purchase up to an additional 610,000 common shares for potential gross proceeds of up to approximately US$10.5 million.
The offering is expected to close on or about December 9, 2020 and is subject to certain conditions and all necessary approvals.
The net proceeds of the offering will be used by the company to fund the purchase from Pretivm Resources of the Snowfield project.
The Snowfield project hosts a large gold deposit immediately adjacent to Seabridge’s 100%-owned KSM gold-copper project in northeast British Columbia, Canada.
The offering proceeds will pay the entire US$100 million up front cash payment payable in respect of the acquisition of the Snowfield project, the expenses related to the acquisition of the Snowfield project and any surplus funds will be used for general working capital.
KSM is one of the world’s largest undeveloped gold-copper projects by gold reserves and it is permitted in one of the globe’s safest and most stable jurisdictions.
Seabridge holds a 100% interest in several North American gold projects. The company’s principal assets are the KSM and Iskut projects located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
