SAN FRANCISCO, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT), throughout its 20-year history, has focused on buying assets with exploration upside in low-risk jurisdictions during down times and selling noncore assets during good times, using the proceeds to fund exploration at its larger and more advanced projects, thereby minimizing equity dilution.
Company mentioned: Seabridge Gold Inc.
This strategy has paid off; Seabridge's flagship KSM project located in the center of British Columbia's Golden Triangle boasts a Proven and Probable reserve of 38.8 million ounces of gold plus 10.2 billion pounds of copper, and a 50-year mine life. The Courageous Lake project, in Canada's Northwest Territories, holds a reserve of 6.5 million ounces of gold. The company has a tight share structure, with 66 million shares outstanding fully diluted.
Rudi Fronk, CEO of Seabridge Gold, explains the strategy, "When we took over the shell in 1999, there were 17 million shares outstanding. We increased that to 27 million over three years to buy assets, so by the end of that period, we had roughly half an ounce of gold per share, 15 million ounces gold and 27 million shares. As the gold price then started to move higher, we realized that finding accretive acquisitions was going to be difficult, so we turned to the drill bit, first at Courageous Lake and then at KSM, and we were able to deliver significant growth in mineral resources. We also sold some assets at the top of the market. One property that we purchased for around $4 million and put $1 million into it, we sold a year later for over $35 million in cash."
That cash Seabridge deployed into Courageous Lake and KSM thereby minimizing its need to issue new shares.
Continue reading this article: This Miner Could Offer Leverage to a Rising Gold Price
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