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TICKERS: PVG, SEA; SA

Northern British Columbia Gold-Copper Property to Change Hands
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Pretium Resources agrees to sell Snowfield to Seabridge Gold.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) and Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced the respective acquisition and sale of Pretium's Snowfield property adjacent to Seabridge's KSM project in British Columbia, Canada. Snowfield is located in the same valley as KSM's Mitchell deposit. The transaction is expected to close by year-end.

Seabridge noted in its news release that for Snowfield it will pay a consideration composed of three components: US$100 million in cash for which Seabridge will obtain financing, a 1.5% net smelter returns royalty on Snowfield production and a future contingent payment of US$20 million, US$15 million of which may be credited against future royalty payments. The acquisition is contingent upon Seabridge obtaining financing.

"The acquisition enables exciting new development opportunities for KSM which could have a significant positive impact on project economics," the company stated in the release.

"This acquisition brings Seabridge a number of major benefits. First, it adds appreciably to our ounces of gold per share, our most important measure of shareholder value, at a cost of approximately US$3 per oz," Seabridge Chairman and CEO Rudi Fronk said in the release.

Second, Snowfield's measured and indicated mineral resources have the potential to significantly increase KSM's proven and probable reserves. Snowfield's mineral resource is 25.9 million ounces of gold in the measured and indicated category and a further 9.0 million ounces in the inferred category as well as substantial copper resources," Fronk stated. "The estimated strip ratio for Snowfield deposit is less than one-to-one and previous studies indicate its resources can be successfully blended with Mitchell ore."

"Work is already underway to determine how to integrate Snowfield into a new KSM mine plan," Fronk added.

The future conditional payment of US$20 million is due to Pretium "within six months following the earlier of (i) commencement of commercial production from Snowfield Property or any part thereof; and (ii) announcement by Seabridge of a bankable feasibility study which includes production of reserves from the Snowfield Property," the company noted.

In Pretium's news release, President and CEO Jacques Perron said the transaction, for one, "provides us the opportunity to immediately realize the value of Snowfield, an undeveloped asset that we believe is not reflected in our share price."

Pretium intends to apply the cash proceeds to its revolving credit facility, which amounted to $198 million on Sept. 30, 2020. Along with a boost to its balance sheet and the flexibility to reduce debt, the deal allows Pretium to stay involved in and benefit from Snowfield over the long term through the royalty.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold and Pretium Resources. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.





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