Saturday, May 31, 2025

Latest

Ontario Teachers Pension Plan, Sprott Acquire 60% Silver Royalty At Seabridge’s KSM Project

The Ontario Teachers’ Pension Plan appears to be somewhat bullish on the price of silver. The group this morning indicated that it, together with Sprott Resource Streaming and Royalty Corp, has acquired a silver royalty on the KSM project in BC, operated by Seabridge Gold (TSX: SEA).

The arrangement will see Seabridge’s subsidiary, KSM, sell a secured note to both the Ontario Teachers and Sprott, valued at US$225 million. Once the secured note matures, it will then transition to a silver royalty on the property. Upon maturity, the principal repaid will be utilized to purchase a 60% royalty on silver produced.

The note itself bears interest at a rate of 6.5% per annum, with interest payable in cash or shares of Seabridge. The note is to mature at the earlier of commercial production, or the 10-year anniversary of the issuance of the note. Once converted to a royalty, Seabridge can repurchase up to 50% of the silver royalty at an undisclosed price that provides a minimum return to the investors.

“This investment highlights Ontario Teachers’ growing commitment to invest in the global metals industry, where we can achieve inflation protection, real returns and cash flow diversification. This is an innovative structure that provides excellent exposure to a combination of fixed returns and long-term silver prices,” commented Christopher Metrakos, Managing Director of Natural Resources for the Ontario Teachers.

Proceeds from the sale of the secured note are to be used to further development at KSM, and push the project towards being “substantially started.” The transaction is currently slated to close on March 15.

Seabridge Gold last traded at $21.14 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Seabridge Gold Obtains License Extension For Mitchell Treaty Tunnels At KSM

Seabridge Gold (TSX: SEA) has been granted a twenty year extension on certain permits at...

Wednesday, September 25, 2024, 08:03:10 AM

Ontario Teachers’ Pension Plan Reports Disappointing 2023 Results Amid “Economic Uncertainties”

The Ontario Teachers’ Pension Plan concluded 2023 with results falling short of expectations, citing challenges...

Thursday, March 14, 2024, 02:19:00 PM

Pretium Resources Sells Snowfield Property For US$100 Million, Records Significant Impairment In Process

Pretium Resources (TSX: PVG) (NYSE: PVG) this morning announced that it has agreed to sell...

Friday, December 4, 2020, 07:50:23 AM

Seabridge Gold: 47 Million Ounces and Counting

At the Rule Symposium in Boca Raton, Florida, Rudi Fronk, Chairman & CEO of Seabridge...

Thursday, July 11, 2024, 09:32:00 AM

Ontario Teachers’ Pension Plan Invested $95M In Now-Imploded Crypto Exchange FTX

It appears the FTX carnage has no end: the crypto exchange’s disappearing fortunes have left...

Friday, November 11, 2022, 01:14:38 AM