NEWS about SEA, Seabridge Secures $1.5 Million For Gold Acquisition Program
Vancouver, British Columbia
Seabridge Resources (the ``Company'') announced today that Pan Atlantic Bank and Trust Ltd. of Bridgetown, Barbados, W.I., a bank registered under the Off-Shore Bank Act of Barbados, has agreed to purchase $1.5 million in unsecured convertible debentures from the Company. Pan Atlantic is a wholly owned subsidiary of FCMI Financial Corporation of Toronto and an affiliate of Friedberg Mercantile Group, a Toronto based investment dealer and futures commission merchant. Closing of the financing is subject to regulatory and shareholder approval.
The debentures will have a four-year term, pay interest at the rate of five percent per annum and, at the option of the holder, will convert to Seabridge common shares at an exercise price of $0.80 per share for the first two years, $0.90 per share during year three and $1.00 per share during the final year. Interest for the first two years will be accrued and added to the principal amount. The Company also has the option to force conversion of the debentures into common shares if certain share price and trading volume requirements are met.
Seabridge CEO Rudi Fronk noted that the Company has recently announced two new gold resource acquisitions, Red Mountain in British Columbia (see News Release dated February 4, 2002) and Borealis in Nevada (see News Release dated February 12, 2002). ``This financing will enable us to complete these acquisitions and fund associated holding costs. The net result will increase the Company's gold resources per share and is therefore anti-dilutive''.
This debenture financing will increase Pan Atlantic's implied equity ownership in Seabridge to more than 20% and therefore requires shareholder approval which will be sought at the Company's next annual meeting of shareholders in June.
Seabridge also reports that, in connection with its proposed Red Mountain acquisition, it has commissioned an independent resource study which will conform with National Instrument 43-101. The Company's news release of February 4, 2002 reported a resource estimate for the project which was prepared by the vendor for its internal use and had not been disclosed by the vendor under National Instrument 43-101.
Seabridge has been designed to provide its shareholders maximum leverage to the price of gold. The Company is searching for additional gold resources during the current period of depressed gold prices.
ON BEHALF OF THE BOARD
``Rudi Fronk,'' President & C.E.O.
For further information please contact: Rudi P. Fronk, President and C.E.O. Tel: (416) 367-9292 * Fax: (416) 367-2711 Visit our website at www.seabridgegold.net Email: info@seabridgegold.net
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Seabridge Resources Inc.
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I don't want their stock,,, Don't trade BB.
I want Borealis backing GPXM stock. Trades BB, 13 bucks any size trade, limit order. great fills. !!!!
take their money to develop,, make more that way.
IMO |
