Mr. Rudi Fronk reports
SEABRIDGE GOLD SECURES $9.9 MILLION BOUGHT DEAL PRIVATE PLACEMENT OF FLOW-THROUGH SHARES AT $32.94 PER SHARE
Seabridge Gold Inc. has entered into an agreement with Cantor Fitzgerald Canada Corp. as sole bookrunner and lead underwriter on behalf of a syndicate of underwriters, including B. Riley FBR Inc. Canaccord Genuity Corp. and Roth Capital Partners LLC, under which the underwriters have agreed to purchase, on a bought deal private placement basis, 300,000 flow-through common shares at a price of $32.94 per share, for total gross proceeds of approximately $9.9-million. The offering price represents a 45.6-per-cent premium to the previous day's closing price on the Toronto Stock Exchange.
The company has granted the underwriters an option to increase the gross proceeds of the offering by up to 15 per cent, exercisable in whole or in part at any time up to two business days prior to the closing date.
The closing of the offering is expected to occur on or about June 11, 2020, and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange. The flow-through shares issued in connection with the offering will be subject to a statutory hold period in accordance with applicable securities legislation.
The company intends to use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses within the meaning of the Income Tax Act (Canada) to explore the company's mineral properties in British Columbia. The company has also agreed to renounce such CEE with an effective date of no later than Dec. 31, 2020.
Seabridge holds a 100-per-cent interest in several North American gold projects. The company's principal assets are the KSM and Iskut projects located near Stewart, B.C., Canada, and the Courageous Lake gold project located in Canada's Northwest Territories. For a full breakdown of Seabridge's mineral reserves and mineral resources by category please visit the company's website.
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