Colorado Resources Acquires Seabridge Gold’s KSP Project, B.C.
Published: August 11, 2017 |
SnipGold Corp., a wholly-owned subsidiary of Seabridge Gold Inc. has entered into an agreement with Colorado Resources Ltd., whereby Colorado has agreed to purchase SnipGold’s 49 perecent interest in the KSP Gold Project.
The transaction will result in Colorado owning a 100 percent interest in the KSP Project upon payment to Seabridge of $1,000,000 in cash, 2,000,000 Colorado common shares and a 2 percent NSR on the property (half of which can be repurchased at any time for $2,000,000). Closing of the transaction is subject to TSX Venture Exchange approval.
KSP adjoins Seabridge’s 100 percent owned Iskut Project in northwestern British Columbia, Canada where Seabridge is currently conducting a multi-million dollar drill program exploring for high grade gold deposits.
Seabridge obtained a 100 percent interest in the KSP Project as part of its acquisition of 100 percent of SnipGold Corp. in June, 2016. At the time of the SnipGold acquisition, the KSP Project was subject to an exploration earn-in agreement in favor of Colorado as operator. In May, 2017, Colorado said it had earned a 51 percent interest in KSP and outlined the 2017 exploration spending that would vest a further 29 percent interest.
“The sale of SnipGold’s residual interest in KSP is part of Seabridge’s ongoing program of divesting non-core assets in order to focus on projects in which it is sole owner and operator. Our corporate objectives are better served by taking a passive interest in KSP and allocating our resources to exploration programs now in progress at KSM and Iskut. We wish Colorado every success at KSP and we hope to profit from their work as a shareholder and royalty holder in the project,” said Seabridge Chairman and CEO Rudi Fronk.
About Seabridge Gold
Seabridge Gold holds a 100 percent interest in several North American gold resource projects. The company’s principal assets are the KSM and Iskut properties located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories.
To stop by Seabridge Gold’s website, CLICK HERE
About Colorado Resources
Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and Nevada. Colorado’s main BC exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100 percent owned Kingpin property and the 100 percent owned North ROK property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.
To stop by Colorado Resources’ website, CLICK HERE
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