Seabridge Gold


Seabridge is pursuing a strategy of divesting assets which, in the Company's view, are not likely to make a significant contribution to its long-term value. Typically, these non-core assets are either smaller in size, lacking in upside potential, or not fully owned or operated by Seabridge. To date, this divestiture program has realized approximately US$50 million in cash to the Seabridge treasury, thereby contributing to the Company's aim of reducing share dilution and increasing gold ownership per share.

Seabridge retains an interest in the following non-core assets from which it expects to generate approximately US$30 million in cash over the next several years.

Grassy Mountain

In April 2011, Seabridge Gold entered into a formal agreement granting Calico Resources Corp. an option to acquire a 100% interest in the Grassy Mountain Project located in Malheur County, Oregon. In February 2013, Calico exercised its option to acquire 100% of the Grassy Mountain Project. In consideration for the sale of Grassy Mountain, Seabridge was issued common shares in Calico and retained a 10% net profits interest (“NPI”) in the Grassy Mountain Project. Seabridge holds an option to “put” the 10% NPI to Calico for US$10 million in cash at the point the project is fully permitted and a final feasibility study has been completed.

In July 2016, Paramount Gold Nevada Corp. (NYSE: “PZG”) acquired Calico Resources. As a result, Seabridge retains a significant share position in PZG as well as the 10% NPI in the Grassy Mountain Project, subject to the Put Option described above. In January 2017, Rudi Fronk, Chairman and CEO of Seabridge Gold, was appointed non-executive Chairman of PZG.

For updates on Grassy Mountain, please visit the PZG website.

Quartz Mountain

On October 24, 2011, Seabridge Gold entered into an Option Agreement with Orsa Ventures Corp. whereby Orsa could purchase Seabridge's 100% interest in the Quartz Mountain Project and all of Seabridge's undivided 50% beneficial joint venture interest in the adjacent Angel's Camp Gold Property, located in Lake County, southern Oregon. Under the Option Agreement, Seabridge has already been paid $2.5 million in cash.

In September 2013, Alamos Gold Inc. (TSX and NYSE “AGI”) acquired Orsa along with the option to acquire Quartz Mountain. To complete the acquisition of the Quartz Mountain Project, Alamos must pay Seabridge: (i) an additional $3,000,000 in cash or Alamos common shares (at Seabridge's election), within five business days of completing a National Instrument 43-101 Feasibility Study on Quartz Mountain; and (ii) a further $15,000,000 in cash or, at Seabridge's election, a 2% net smelter royalty on Quartz Mountain within 60 days of determining that a mine has been permitted and bonded.

For updates on Quartz Mountain, please visit the Alamos Gold website.

Red Mountain

On April 15, 2014, Seabridge entered into an Option Agreement with IDM Mining (f.k.a. Revolution Resources) whereby IDM could acquire a 100% interest in the Red Mountain Gold Project located in northwestern British Columbia. Under the terms of the option agreement, IDM issued Seabridge 29,733,000 common shares representing 19.9% of the issued and outstanding shares of IDM post issuance as of the date of the Agreement and has paid Seabridge $2 million cash in staged payments. Subsequent to these payments, Seabridge sold all of the IDM common shares.

In May 2017, IDM completed the acquisition of a 100% interest in Red Mountain and Seabridge recovered $1 million in cash held as reclamation security by the Province of British Columbia. Under the terms of the sale agreement, IDM is further obligated to make a $1.5-million cash payment to Seabridge upon the commencement of commercial production at Red Mountain, and Seabridge retains the right to acquire 10 per cent of the annual gold production from the project at a cost of $1,000 (U.S.) per ounce up to a maximum of 500,000 ounces produced (50,000 ounces to Seabridge). Alternatively, at Seabridge''s sole option, Seabridge may elect to receive a one-time cash payment of $4 million at the commencement of production in exchange for the gold metal stream interest.

For updates on Red Mountain, please visit the IDM Mining website.

KSP Project

On June 21, 2016, Seabridge Gold acquired 100% of the issued and outstanding shares of SnipGold, giving Seabridge a 100% ownership interest in the Iskut and KSP Projects subject to an agreement by which Colorado Resources Ltd. was able to earn up to an 80% interest in the KSP Project (59 claims covering 30,500 hectares). Subsequently, Seabridge completed a sale of its interests in the KSP Project to Colorado Resources in exchange for $1,000,000 in cash, 2,000,000 Colorado common shares and a 2% NSR on the property (half of which can be repurchased by Colorado at any time for $2,000,000). For updates, please see the Colorado Resources website.