Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced a financing and the procurement of hydro power, and on that news, ROTH Capital Partners increased its target price on the gold mining company to $30 per share from $27, reported analyst Joe Reagor in a March 1 research note. Seabridge's current share price is around $18.
"Additionally, we are reiterating our Buy rating as we believe Seabridge is making decisions designed to accelerate joint venture negotiations with potential partners," Reagor added.
The analyst described both of the recent "positive events" this mining company effected.
As for the financing, Seabridge will receive $225 million through a convertible loan from Sprott Resource Streaming and Royalty and the Ontario Teachers' Pension Plan. The loan will accrue interest at a 6.5% rate and upon maturity, will convert into a royalty equal to 60% of the silver production from Seabridge's KSM project. These terms are outlined in the secured note agreement Seabridge signed with both entities last month.
"We see this as positive for Seabridge as it reduces near-term funding risks, in our opinion," Reagor commented.
More recently, Canada-based Seabridge entered into another agreement, this one with BC Hydro to connect to grid power so construction at KSM can start.
This "allows the company to move towards 'substantially started' status, which is key to maintaining its environmental permits," Reagor pointed out. "Second, the hydro power should provide both lower cost and substantially cleaner energy for project construction."
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.
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Disclosures and Disclaimers, ROTH Capital Partners LLC, Seabridge Gold Inc., March 1, 2022
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Disclosures: ROTH makes a market in shares of Seabridge Gold, Inc. and as such, buys and sells from customers on a principal basis.
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