Seabridge Gold Options Grassy Mountain Project To Calico Resources
TORONTO, CANADA -- (Marketwire) -- 03/23/11 -- Seabridge Gold (TSX: SEA)(NYSE Amex: SA) announced today that it has entered into a non-binding, exclusive Letter of Intent with Calico Resources Corp. (Calico) pursuant to which Seabridge has agreed, subject to the settlement and execution of a definitive option agreement, to grant to Calico an option to acquire a 100% interest in the Grassy Mountain Project. To exercise the option, Calico must issue to Seabridge (i) 2,000,000 of its common shares following TSX Venture Exchange approval; (ii) 4,000,000 shares at the first anniversary and (iii) 8,000,000 shares when the Project has received the principle mining and environmental permits necessary for the construction and operation of a mine. In addition, after the delivery of a NI 43-101 compliant Feasibility Study on the Project, at the sole election of Seabridge, Calico must either grant Seabridge a 10% Net Profits Interest or pay Seabridge Cdn$10 million in cash.
Seabridge President and CEO Rudi Fronk stated that "Seabridge is enthusiastic about Calico's acquisition of the Project and believes that Calico's management team has the skill set, commitment and knowledge to both grow the resource through exploration and progress the existing resource to production. It is for these reasons that we are willing to accept a significant portion of the purchase in Calico shares, as we wish to be a partner in the development and not just a vendor of an asset."
Seabridge holds a 100% interest in several North American gold projects. The Company's principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada's Northwest Territories. For a breakdown of Seabridge's mineral reserves and mineral resources by category please visit the Company's website at http://www.seabridgegold.net/resources.php.
All reserve and resource estimates reported by the Corporation were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
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