Seabridge Gold Confirms Transfer of Red Mountain Claims to IDM Mining
May 26 2017 - 8:00AM
Seabridge Gold (TSX:SEA) (NYSE:SA) reported today
that it has completed the transfer of the Red Mountain Project to
IDM Mining Ltd. (“IDM”) upon the exercise of IDM’s option to
acquire the Project. IDM has assumed all responsibilities and
liabilities related to the project. In connection with IDM taking
responsibility for all environmental obligations at Red Mountain,
cash held under a Safekeeping Agreement with the Province of BC as
security for reclamation liabilities will be released, of which
CDN$750,000 will be retained by Seabridge. The Red Mountain Project
covers an area of 17,125 hectares and is located 15km northeast of
the town of Stewart, BC.
According to the option agreement between
Seabridge and IDM, IDM is obligated to make a CDN$1.5 million cash
payment to Seabridge upon the commencement of commercial production
at Red Mountain. Seabridge also retains the right to acquire 10% of
the annual gold production from the project at a cost of US$1,000
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 CDN$4 million at
the commencement of production in exchange for the gold metal
stream interest.
Seabridge Chairman and CEO Rudi Fronk said the
sale is part of a continuing program of divesting non-core assets
in order to focus resources on its KSM and Iskut projects.
Seabridge holds a 100% interest in several North
American gold projects. The Company's principal assets are the KSM
Project located near Stewart, British Columbia, Canada and the
Courageous Lake gold project located in Canada's Northwest
Territories. For a full breakdown of Seabridge's mineral reserves
and mineral resources by category please visit the Company's
website at http://www.seabridgegold.net/resources.php.
Neither the Toronto Stock Exchange, New York Stock
Exchange, nor their Regulation Services Providers accepts
responsibility for the adequacy or accuracy of this
release.
All reserve and resource estimates
reported by the Corporation were calculated in accordance with the
Canadian National Instrument 43-101 and the Canadian Institute of
Mining and Metallurgy Classification system. These standards differ
significantly from the requirements of the U.S. Securities and
Exchange Commission. Mineral resources which are not mineral
reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD"Rudi Fronk"
Chairman and C.E.O.
For further information, please contact:
Rudi P. Fronk, Chairman and C.E.O.
Tel: (416) 367-9292 · Fax: (416) 367-2711
Email: info@seabridgegold.net
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