Published: May 23, 2023 |

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Seabridge Gold’s wholly-owned subsidiary, KSM Mining has agreed to the principal terms of a royalty agreement under which Sprott Resource Streaming and Royalty will pay KSMCo US$150 million and KSMCo grants Sprott a 1.2 percent net smelter royalty (NSR) on its 100 percent owned KSM project located in northern British Columbia, Canada. The proceeds will be used to complete the physical works at KSM for which Seabridge expects to achieve a designation of ‘substantially started’ from the B.C. government.

This fund-raising is intended to move KSM towards accomplishing three main objectives:
• Achieve the ‘substantially started’ designation which ensures the continuity of the KSM project’s approved
  environmental assessment certificate (EAC) for the life of the project
• Complete key tasks which support construction readiness and shorten the construction period once a
  construction decision has been made
• Enhance the KSM proposition in its ongoing joint venture discussions by securing the EAC, further de-risking
  the project, and accelerating the construction timetable

“The new funding will enable us to complete the switching station and related work required for connecting KSM to BC Hydro’s Northern Transmission Line for construction and operation of the mine. Access to this green energy will substantially enhance KSM’s sustainability and carbon profile,” said Seabridge Chairman and CEO Rudi Fronk.

“Proceeds from the royalty agreement will also allow us to continue providing significant work for companies owned and managed by our Indigenous partners in the KSM project, an important ESG objective,” added Fronk.

“This new US$150 million in financing, coupled with the US$225 million we raised from Sprott and Ontario Teachers’ Pension Plan last year, provide the capital we believe is needed to achieve substantially started status well before July 2026. It also has the added advantage of cutting time from the construction schedule once a construction decision has been made,” concluded Fronk.

“Since our original investment last year, we continue to be impressed by the significant progress the Seabridge team is making at KSM. The quality of the engineering and early works is excellent, and their strong relationships with the local indigenous peoples is truly best-in-class. We are very pleased to expand our partnership with Seabridge and further accelerate KSM’s development into a world-class mine,” said Michael Harrison, managing partner at Sprott.

Seabridge Gold holds a 100 percent interest in several North American gold projects. The company’s principal asset, the KSM project, and its Iskut project are located in Northwest British Columbia, Canada’s “Golden Triangle”, the Courageous Lake project located in Canada’s Northwest Territories, the Snowstorm project in the Getchell Gold Belt of Northern Nevada, and the 3 Aces project set in the Yukon Territory.

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