TORONTO – Seabridge Gold
has announced its intention to acquire SnipGold Corp
. in an all share deal. Shareholders of SnipGold will receive one Seabridge share for each 63 Snip shares, implying a price of $0.291 per SnipGold share.
Seabridge shareholders will gain exposure to SnipGold’s resource at its Iskut project while shareholders of SnipGold receive an immediate 124% premium and exposure to Seabridge’s KSM project. Both gold-copper projects are located northwest of Stewart, in the Golden Triangle area of British Columbia.
Seabridge anticipates issuing about 600,000 shares to existing Snip shareholders, and that would leave SnipGold investors with a 1.14% of the combined company. The arrangement requires the approval of two-thirds of SnipGold’s shareholders as well as the usual regulatory and legal approvals.
The Iskut deposit contains more than 2 million oz of gold and 500 million lb of copper in measured and indicated resources (www.SnipGoldCorp.com
). The KSM project has measured and indicated resources containing almost 39 million oz of gold and more than 10 billion lb of copper (www.SeabridgeGold.net