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Tag: Seabridge Gold Inc.

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Seabridge Gold Inc. (TSX:SEA) – 21% AuEq M&I+I Resource Increase for Mitchell and East Mitchell

Seabridge Gold reported updated mineral resource estimates for its Michell and East Mitchell (formerly Snowfield) deposits, two of the five deposits at its 100%-owned KSM project in BC. M&I+I resources increased by 16% for Au, 35% for Cu, 26% for Ag and 22% for Mo. We view this update positively as we see this resource update leading to a likely increase in proven and probable reserves, better grades early in the mine life and a deferral of the capital-intensive underground block-cave development at KSM.

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Red Cloud | redcloudfs.com

Red Cloud’s 2022 Very Pre-PDAC Mining Showcase – Day Two Recap

Yesterday, Red Cloud hosted the second of its three-day 2022 Very Pre-PDAC Mining Showcase, which featured 32 presenting companies and a fireside chat with Ross Beaty, Chairman of Equinox Gold Corp. Over 1,750 participants have registered for the event. With this note, we want to provide a quick recap of the highlights from the conference for those who were unable to attend the live event (see our Day One recap here). If you would like to attend Day Three of Red Cloud’s 2022 Very Pre-PDAC Conference, register here. Replays are available on the Red Cloud website.

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Red Cloud | redcloudfs.com

Seabridge Gold Inc. (TSX:SEA) – Capex Savings by Moving to Grid Power During KSM Construction

Seabridge Gold is planning to go greener during its construction phase, as it has signed an agreement with BC Hyrdro to supply electricity for construction of its 100%-owned KSM project. We view this news very positively as previous studies had incorporated the use of much higher cost, diesel power for construction activities, with grid connection only anticipated later for operations. A move to grid power should not only decrease capex and lower share dilution, but has permitting implications, helping ensure that the Environmental Assessment Certificate (EAC) stays in place for life of the project. With this news and its recent US$225M note, we believe KSM is moving towards the designation of ‘substantially started’ while de-risking it towards a JV arrangement, financing and production decision.

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Red Cloud | redcloudfs.com

Seabridge Gold Inc. (TSX:SEA) – US$225M KSM Note Converts to 60% Gross Ag Royalty

Seabridge Gold announced that it has agreed to raise US$225M via a secured note to Sprott Resource Streaming and Royalty Corp. (Sprott) and Ontario Teachers’ Pension Plan. The US$225M note bears 6.5% interest and can be exchanged into a 60% gross silver royalty covering production from its 100%-owned KSM project in BC. Proceeds are to cover ongoing physical work and advance the project towards the designation of ‘substantially started’. We see this arrangement, in part, as being a strategic step in keeping the project on track, if not shortening timelines and potentially reducing costs and risks down the road, while perhaps best leveraging the project for a JV Agreement. Such a JV would likely be required before we see project development, and that this agreement which essentially amounts to a silver stream, would materially impact project economics. Management highlights that achieving the ‘substantially started’ designation ensures the continuity of the Environmental Assessment Certificate (EAC) over the LOM; completion of key tasks could shorten the construction timelines upon a positive decision; and these could enhance the value of KSM in future JV negotiations by securing the EAC, further de-risking the project.

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