TORONTO, Dec. 10, 2013 /CNW/ - Seabridge Gold Inc. (TSX:SEA)(NYSE: SA)
announces that it has closed its previously announced $16.8 million
bought deal financing consisting of 1.5 million flow-through common
shares at a price of $11.17 per share (a 22.5% premium to the closing
price on the TSX the day before the financing was announced). The
financing was arranged by a syndicate of underwriters, led by Stonecap
Securities Inc. and including National Bank Financial Inc. Stonecap
Securities Inc. and Cowen and Company, LLC acted as financial advisors
to Seabridge on this transaction.
The gross proceeds from the Offering will be used to fund exploration
and development at Seabridge's 100% owned KSM Project in north western
British Columbia, Canada and in particular to follow up on this year's
extraordinary Deep Kerr discovery where an initial resource estimate is
now being prepared.
Seabridge Chairman and CEO Rudi Fronk noted that the Company's
management team believes this year's Deep Kerr core zone discovery has
the potential to fundamentally transform Seabridge. "This is a rare
opportunity to define what we think could be one of the world's most
productive new mining districts. We are confident that raising this
money in a difficult environment to continue the KSM core zone drilling
program next year represents an outstanding opportunity to deliver
shareholder value. The final holes drilled this year confirm that the
Deep Kerr zone widens substantially to the north while both copper and
gold grades also improve significantly from an already high level. In
our view, the best is yet to come and this funding ensures that we are
able to proceed aggressively."
The financing was made by way of private placement to accredited
Canadian investors and the shares are subject to a four month hold
period in Canada expiring on April 11, 2014.
Seabridge holds a 100% interest in several North American gold resource
projects. The Company's principal assets are the KSM property located
near Stewart, British Columbia, Canada and the Courageous Lake gold
project located in Canada's Northwest Territories. For a breakdown of
Seabridge's mineral reserves and resources by project and category
please visit the Company's website at http://www.seabridgegold.net/resources.php.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless an exemption from such registration is available.
Neither the Toronto Stock Exchange nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this release.
All reserve and resource estimates reported by the Company 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.
Statements relating to the estimated or expected future production and
operating results and costs and financial condition of Seabridge,
planned exploration work at the Company's projects and the expected
results of such work are forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical facts
and are generally, but not always, identified by words such as the
following: expects, plans, anticipates, believes, intends, estimates,
projects, assumes, potential and similar expressions. Forward-looking
statements also include reference to events or conditions that will,
would, may, could or should occur, including in relation to potentially
transforming the Company, the area potentially becoming one of the most
productive new mining districts, this being an outstanding opportunity
to deliver shareholder value and whether the best is yet to come.
Information concerning exploration results and mineral reserve and
resource estimates may also be deemed to be forward-looking statements,
as it constitutes a prediction of what might be found to be present
when and if a project is actually developed. These forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable at the time they are
made, are inherently subject to a variety of risks and uncertainties
which could cause actual events or results to differ materially from
those reflected in the forward-looking statements, including, without
limitation: uncertainties related to raising sufficient financing to
fund the planned work in a timely manner and on acceptable terms;
changes in planned work resulting from logistical, technical or other
factors; the possibility that results of work will not fulfill
projections/expectations and realize the perceived potential of the
Company's projects; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold reserves
and resources; risk of accidents, equipment breakdowns and labour
disputes or other unanticipated difficulties or interruptions; the
possibility of environmental issues at the Company's projects; the
possibility of cost overruns or unanticipated expenses in work
programs; the need to obtain permits and comply with environmental laws
and regulations and other government requirements; fluctuations in the
price of gold and other risks and uncertainties, including those
described in the Company's December 31, 2012 Annual Information Form
filed with SEDAR in Canada (available at www.sedar.com) and the Company's Annual Report Form 40-F filed with the U.S.
Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml).
ON BEHALF OF THE BOARD
Chairman and CEO
SOURCE: Seabridge Gold Inc.
For further information:
Rudi P. Fronk, Chairman and CEO
Tel: (416) 367-9292 • Fax: (416) 367-2711