SA Seabridge Gold... completed a sale of a property....
They're raising cash by shedding some decent properties... and I decided I'd like to know why...
As it happens, the latest sale was Red Mountain... which Seabridge says they sold to Sprott Resource Streaming and Royalty for $19 million... but that's only a royalty sale as a part of it, apparently.... as SA had sold the property previously to IDM Mining, now owned by Ascot Resources. It looks like Ascot raised $20 million from Yamana and used it to buy the remaining % of Red Mountain... which Ascot now says it 100% owns. Miners are often pretty fast and loose with that "100% owned" designation... leaving out the bits tied to royalties or liens tied to debt taken out to buy the "100% ownership"... but Ascot clearly notes the provisions. Like seeing that.
Seabridge Sells Residual Red Mountain Interest for US$18 Million
Don't see news items today announcing that deal being done... which I thought I'd seen yesterday ?
Poking more at SA... find a link to a property I know and poked at a bit a few years back... Grassy Mountain in Oregon. Don't remember all the details now... but I poked through that part of the country back in 2014. Later got in a pissing contest with the former CEO of CDE, who was hanging out a shingle as a "mining project financing facilitator" or something like that. I was poking at one of the same companies that he was sniffing at.... and, some of it seemed not all on the up and up, which i pointed out... and whatever. Calico Resources was the core part of it, somehow... and he was involved in funding it, somehow... and when it all went sideways as it clearly seemed it inevitably would, etc. Seabridge then stepped up to buy Calico. Then later sold it on to Paramount Gold Nevada... which has $3.5 million in cash to go along with its $4.8 million in debt and 39 million shares. Would need to make sure the former CEO of CDE is not still involved in it in any way before considering that sort of a risk... but it looks like SA kept it as an inhouse spin out... "In January 2017, Rudi Fronk, Chairman and CEO of Seabridge Gold, was appointed non-executive Chairman of PZG."
Seabridge notes their other deals to be or being done for non-core assets here on their website... as the last entries on the projects page.
That page is transparent enough, and "sort of" answers my questions about what SA is doing... The other projects listed there are also fairly early stage exploration projects... with the exception of what they call their KSM project... which is in fact mostly the Kerr. and Kerr Deep projects... for now... but, no hurry...
I found out more about the SA projects in context, by looking at the webpages for Ascot, which has 3-D interactive regional photo map showing some of the neighbors of the Kerr/Kerr Deep project... and Teuton... which opens with a view of Iron Cap... part of the Seabridge property... and has better maps than the others showing the relationships using traditional mapping... as this one showing the Kerr/Kerr Deep with 10.3 million ounces of gold and 12 billion pounds of copper. Seabridge reports that now as totals for the combined project with Iron Cap, Mitchell and Sulpherets mapped here by Teuton combining for 38.8 million ounces of gold and 10.2 billion pounds of copper... but, note that is reporting only the proven and probable... for KSM only, as shown on the linked KSM project page.
Meanwhile the SA project overview page... bumps them to 45 million ounces of gold as defined reserves... from all projects... while they report the KSM project alone, including resources, as "The world’s largest undeveloped gold project by resources" with "76M oz M&I plus 66M oz inferred".
So, that's 38.8 million ounces in reserves, 37.2 million ounces indicated, plus 66 million ounces inferred... for a total resource at KSM... of 142 million ounces of gold... and a kciker in some less well defined number in the double digits that is many billions of pounds of copper...
That's 3.73 ounces of gold for every one of the 38 million Canadian citizens...
That might help explain why they're more interested in working to develop what they have into a mine... rather than poking around here and there looking for a couple million ounces more ?
With only 75 million shares outstanding... its nice to see them pinching pennies to avoid dilution.
Hopefully, they'll find a way to bootstrap it into production in stages... and pay for the largest portion of the development costs from production... which should become a lot easier as prices rise... |
