NEVADA – Toronto-based Seabridge Gold
has signed a letter of intent to acquire the Snowstorm gold project from Paulson Gold Holdings
. The property occupies 80 km2
at the intersection of the Carlin Trend, the Getchell Trend and the Northern Nevada Rift zone.
[caption id="attachment_1003717176" align="alignright" width="300"] Location map of the Snowstorm gold project in Nevada.
Seabridge has agreed to acquire all the shares of the current owner, a private company that has a 100% share in the property. Paulson will receive 700,000 Seabridge common shares; 500,000 share purchase warrants exercisable for four years at $15.65 per share; and a US$2.5-million conditional payment if exploration outlines at least 5 million oz. of gold in the resources. Should an another 5 million oz. be outlined, Seabridge will make an additional payment of US$5.0 million.
Snowstorm has been explored for the past 10 years, and the sale to Seabridge includes all the data generated by previous operators. Seabridge says that geological and geochemical investigations have documented hydrothermal alteration zones consistent with large, northern Nevada deposit types.
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