Market Overview

Seabridge Gold to Sell Grassy Mountain NPI for $7.5M

Seabridge Gold (NYSE: SA) 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

See full press release

Posted-In: News Guidance Contracts Asset Sales Management Global

 

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