Mining News: Northern Neighbors: Seabridge adds C$20.7M to exploration chest

Seabridge Gold Inc. April 29 reported the closing of a C$8.7 million cross-border public offering. Completed by a syndicate of underwriters led by Canaccord Genuity Corp., the offering included 450,000 Seabridge common shares at C$17.40 each, plus a fully exercised over-allotment option to purchase 50,000 shares at the same price. Seabridge said it intends to use the proceeds to continue to advance its KSM gold-copper project in northwestern British Columbia and for general corporate purposes. Additionally, the underwriters have agreed to purchase 450,000 flow-through shares at C$24.08 per share, plus an over-allotment option of 50,000 additional shares. If fully subscribed, this financing would provide the company with roughly an C$12 million for exploration at KSM and the Iskut property, also in northwestern B.C. Seabridge recently reported a definitive agreement to purchase SnipGold Corp., the owner of Iskut, pending approval by that company’s shareholders. “The main focus at the KSM project is on expanding higher grade zones that have the potential to enhance projected economics,” Seabridge Chairman Rudi Fronk explained. “We also expect to complete our first drill program on the Iskut property this summer, assuming we close our proposed acquisition of SnipGold. At Iskut, our primary target is discovery of high-grade gold similar to what was mined historically.”

- Shane Lasley