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Royal Gold Acquires Additional $18M in Seabridge Common Shares at 15% Premium to Market

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Seabridge Gold (NYSE: SA) announced today that Royal Gold (NASDAQ: RGLD) has exercised its option (the "Share Option") to acquire, by way of private placement, C$18 million in Seabridge treasury shares at a 15% premium to the volume weighted average trading price of Seabridge shares on the TSX for the five day period ending December 11, 2012 as per the original agreement. The private placement consists of 1,004,491 Seabridge common shares at a price of C$17.92 each. There were no fees or commissions payable on this private placement.By exercising the Share Option, Royal Gold obtains a second royalty option to acquire a further 0.75% net smelter return ("NSR") royalty on all gold and silver production from Seabridge's KSM project. Royal Gold can exercise the second royalty option by electing to acquire the 0.75% NSR within 60 days following Royal Gold's agreement that the KSM project is in receipt of all material approvals and permits, full project financing and certain other conditions and paying Seabridge C$60 million in three equal payments over the 18 month period after such election. As background, in June 2011 Royal Gold acquired 1,019,000

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Posted-In: Earnings News Guidance Management M&A


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