This week, Seabridge announced it has entered into an agreement to acquire a 100% interest in the 3 Aces gold project in Yukon, Canada, from Golden Predator Mining Corp. for 300,000 Seabridge common shares, potential future cash payments totaling $2.25 million, continuing royalty participation in the project by Golden Predator, and the immediate cash payment of $263,000 as reimbursement for project-related payments made by Golden Predator. If the transaction does not close, $218,000 of the cash payment becomes a loan payable to Seabridge.
Seabridge Gold Chairman and CEO Rudi Fronk said the 3 Aces Project is a first-rate exploration play with the potential to host a high-grade commercially viable ore body.
“We think 3 Aces is a worthy addition to the three outstanding exploration opportunities we already own in British Columbia, Nevada and the Northwest Territories,” Fronk said. “Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project’s positive metallurgy and establishing excellent relationships with local First Nations and communities.”
Fronk said the company’s exploration team will begin with a review of the extensive data generated by Golden Predator.
The acquisition agreement provides for additional payments to Golden Predator of $1 million upon confirmation of a 3 Aces NI-43-101 compliant mineral resource of 2.5 million ounces (oz) of gold and a further $1.25 million upon confirmation of an aggregate mineral resource of 5 million oz of gold. The agreement also grants Golden Predator a 0.5% net smelter royalty on the project.
3 Aces is a district-scale orogenic-gold project consisting of 1,734 claims covering 357 km² (35,700 ha) located in a readily accessible part of southeastern Yukon. Historical work has identified a broad area of gold-in-soil extending more than 20 km along strike and recent drilling in the Central Core Area has progressed to a point where, with additional exploration drilling, the property could potentially advance to an initial resource with exceptional grade, the company said.
