Seabridge to Acquire Snowstorm Project
Paulson will receive 700,000 Seabridge common shares; 500,000 common share purchase warrants exercisable for four years at $15.65 per share; a conditional cash payment of $2.5 million if exploration activities at Snowstorm result in defining a minimum of 5 million ounces (oz) of gold resources compliant with National Instrument 43-101; and a further cash payment of $5 million on the delineation of an additional 5 million oz of gold resources.
Paulson has agreed to a 60-day exclusivity and non-solicitation period to allow the parties to complete further review and settle a definitive agreement. Canaccord Genuity Corp. acted as financial advisor to Paulson on this transaction.
The Snowstorm property consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15-year period and explored over the past 10 years. Geological and geochemical evaluations of Snowstorm have documented hydrothermal alteration zones consistent with large northern Nevada deposit types. Geophysical surveys have confirmed the structural settings, which host large Northern Nevada deposit types. Limited drilling has demonstrated that some of the target areas are at a depth amenable to surface exploration and resource delineation.