Royal Gold and Seabridge
Agree to Private Placement/Royalty Partnership in KSM
Toronto, Canada - Seabridge Gold Inc. (AMEX:SA, TSX:SEA)
announced today that it has reached an agreement with Royal Gold Inc. (the
"Agreement") whereby Royal Gold will take down a private placement in
Seabridge common shares at a premium to market and Seabridge will grant to Royal Gold an option to acquire a
royalty on production from Seabridge's 100% owned KSM
project. The agreement is subject to TSX approval which is expected shortly.
The private placement in Seabridge is for 1,019,000 common shares at C$29.44 per
share (US$30.39), totaling C$30 million in cash. The purchase price for the
shares is equal to a 15% premium over the weighted average trading price of Seabridge shares on the TSX for the five day trading period
ending 2 days prior to today's announcement. The option granted to Royal Gold
is to acquire a 1.25% Net Smelter Royalty ("NSR") on all gold and
silver production sales from KSM for C$100 million. The option is exercisable
for a period of 60 days following the announcement of receipt of all material
approvals and permits, full project financing and certain other conditions.