Seabridge said Snowfield, immediately adjacent to its 100%-owned KSM gold-copper project, will open up new development opportunities for its flagship asset.
The deal, announced last week, will also give Pretivm a 1.5% net smelter royalty related to all production from the Snowfield project and a future $20 million contingent payment.
Boost to KSM
Snowfield’s mineral resource is 25.9 million ounces of gold in the measured and indicated category and a further 9 million ounces in the inferred category, in addition to substantial copper resources.
“Work is already underway to determine how to integrate Snowfield into a new KSM mine plan,” Seabridge chairman and CEO Rudi Fronk said last week.
An updated preliminary economic assessment (PEA) for KSM released in April had outlined a 44-year mine life and indicated a four-year payback on the $5.2 billion initial capex.
The transaction is expected to close by December 16.
