/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Trading Symbols:
TSX: SEA
NYSE: SA
TORONTO, April 7, 2015 /CNW/ - Seabridge Gold Inc.
(TSX:SEA)(NYSE:SA) (the "Company") announced today that it has
closed its previously announced bought deal financing (the
"Offering"), including the full amount of the over-allotment
option, for aggregate gross proceeds of $16,373,700. A total of 1,610,000 flow-through
common shares of the Company (the "Flow-Through Shares"), including
those pursuant to the exercise of the over-allotment option, were
issued and sold at a price of $10.17
per Flow-Through Share (a 27.3% premium to the closing price on the
TSX the day the Offering was announced). The Offering was completed
through a syndicate of underwriters led by Canaccord Genuity Corp.
and included National Bank Financial Inc. and Paradigm Capital Inc.
Canaccord Genuity Corp. and Cowen and Company, LLC acted as
financial advisors to the Company on the Offering.
The gross proceeds from the Offering will be used to fund the
2015 exploration program at the Company's 100% owned KSM Project in
northwestern British Columbia.
Seabridge Chairman and CEO Rudi
Fronk noted that "our 2015 exploration program will continue
to focus on discovering and expanding higher grade core zones that
have the potential to enhance KSM's projected economics. We expect
this year's program to once again generate additional gold
resources which more than offset the share dilution involved.
Growing gold ownership per share continues to be a key objective
for Seabridge."
The 2014 drill program at Deep Kerr and the Iron Cap Lower Zone
added a combined estimated 5.4 million ounces of gold and 4.2
billion pounds of copper in a total of 431 million tonnes of
inferred resources grading 0.40 g/T gold and 0.45% copper (at a
US$20 per tonne NSR cutoff) while
shares outstanding increased by only 1.36 million during the year,
thereby once again increasing resource ounces of gold per share. In
just two years, the Company's new core zone program has added an
estimated 11.3 million ounces of gold and 10.3 billion pounds of
copper in a total of 945 million tonnes of inferred resources at an
average grade of 0.38 g/T gold and 0.49% copper (at a US$20 per tonne NSR cutoff). Given its history of
successfully raising inferred resources at KSM to higher
categories, the Company is confident that the observable continuity
of these new core zone discoveries will support upgrading resources
with additional drilling. (See:
http://seabridgegold.net/News/Article/516/ and
http://seabridgegold.net/News/Article/517/).
The Offering was made by way of private placement in
Canada. The Flow-Through Shares
issued under this Offering are subject to a four-month hold
period.
Seabridge holds a 100% interest in several North American gold
projects. The Company's principal assets are the KSM Project
located near Stewart, British
Columbia, 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 at
http://www.seabridgegold.net/resources.php
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold within the
United States absent registration or unless an exemption
from such registration is available.
Neither the Toronto Stock Exchange nor its Regulation
Services Provider accepts responsibility for the adequacy or
accuracy of this release.
Statements relating to estimated resources or reserves, the
estimated or expected project economics, including future
production, operating results and costs, and financial condition of
Seabridge, planned exploration work at the Company's projects and
the expected results of such work are forward-looking statements
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by words such as the following: expects, plans,
anticipates, believes, intends, estimates, projects, assumes,
potential and similar expressions. Forward-looking statements also
include reference to events or conditions that will, would, may,
could or should occur, including in relation to 2015 exploration
generating additional resources that more than offset dilution.
These forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable at the time they are made, are inherently subject to a
variety of risks and uncertainties which could cause actual events
or results to differ materially from those reflected in the
forward-looking statements, including, without limitation: the risk
of the mineralization at the project being less continuous than
expected or additional core zones not being present where the
Company's exploration models predict; changes in planned work
resulting from logistical, technical or other factors; the
possibility that results of work will not fulfill
projections/expectations and realize the perceived potential of the
Company's projects; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold
reserves and resources; risk of accidents, equipment breakdowns and
labour disputes or other unanticipated difficulties or
interruptions; the possibility of environmental issues at the
Company's projects; the possibility of cost overruns or
unanticipated expenses in work programs; the need to obtain permits
and comply with environmental laws and regulations and other
government requirements; fluctuations in the price of gold and
other risks and uncertainties, including those described in the
Company's December 31, 2014 Annual
Information Form filed with SEDAR in Canada (available at www.sedar.com) and the
Company's Annual Report Form 40-F filed with the U.S. Securities
and Exchange Commission on EDGAR (available at
www.sec.gov/edgar.shtml).
ON BEHALF OF THE BOARD
"Rudi Fronk"
Chairman and CEO
SOURCE Seabridge Gold Inc.
