Seabridge Gold Completes Sale of Noche Buena to Fresnillo/Newmont JVadmin
Seabridge Gold announced that it has completed the sale of its 100% owned Noche Buena gold project in Sonora, Mexico to Minera El Bermejal, S. de R.L. de C.V., an affiliate of Minera Penmont, S. de R.L. de C.V., which operates the La Herradura gold mine in Sonora. Bermejal and Penmont each are owned 56% by Fresnillo plc. and 44% by Newmont USA Limited, a subsidiary of Newmont Mining Corporation. At closing, Seabridge Gold was paid US$25 million in cash. A further US$5 million is payable upon commencement of commercial production from Noche Buena and a 1.5% net smelter royalty is payable on all production sold for US$800 per ounce or greater of gold.
Seabridge Gold President and CEO Rudi Fronk said that the cash proceeds will enable the company to advance its core projects – KSM and Courageous Lake – towards feasibility without share dilution. “We will be looking to make other sales of non-core assets in the months ahead,” he said.
J.P. Morgan Securities Inc. acted as financial advisor to Seabridge Gold in connection with the transaction.
Seabridge Gold holds a 100% interest in several North American gold resource projects. The Corporation’s principal assets are the KSM property in British Columbia, one of the world’s largest undeveloped gold/copper projects, and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of the Corporation’s mineral resources by project and resource category please visit the Corporation’s website at http://www.seabridgegold.net/resources.php.