Seabridge Gold to Sell Grassy Mountain NPI for $7.5M

Seabridge Gold

today announced that it has agreed to sell its 10% net profits interest in the Grassy Mountain Project for proceeds of US$7.5 million. The sale is conditional on the concurrent completion of the sale to Rockstar Resources Inc. ("Rockstar") by Calico Resources Corp. ("Calico") of its wholly owned subsidiary, Calico Resources USA Corp. ("Calico USA"), as announced by Calico on December 3, 2013. Calico USA is the owner of the Grassy Mountain Project, having acquired it from Seabridge upon exercise of an option for a 100% interest in the project originally granted in April, 2011. Under the terms of acquisition of the Grassy Mountain Project by Calico USA, Seabridge retained a 10% net profits interest (the "NPI") in the Grassy Mountain Project. In addition, within the 30 days following Calico's receipt of a feasibility study on the Grassy Mountain Project, Seabridge has the right to elect to cause Calico to purchase the NPI for US $10,000,000 (the "NPI Put"). In connection with the purchase of the Grassy Mountain Project by Rockstar, Seabridge has agreed to provide a discharge of the NPI and NPI Put to Calico for payment of US$5