Seabridge Gold (TSX: SEA) appears to be facing significant headwinds at its KSM project in British Columbia. The company has now seen a second petition filed against it in relation to its substantially started designation.
The latest petition comes from SkeenaWild Conservation Trust and the Southeast Alaska Indigenous Transboundary Commission. Filed against the Minister of Environment and Climate Change Strategy of British Columbia, along with Seabridge’s subsidiary KSM Mining, this new petition was filed on the grounds that the substantially started designation is simply “unreasonable.”
The petition is seeking for the substantially started determination to be quashed and remitted to the Minister for reconsideration. As per Seabridge, both petitions against the KSM project will have to demonstrate that the decision to issue the determination was unreasonable, however current legislation leaves the Minister with wide discretion in making the substantially started designation.
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Furthermore, this new petition is brought forward by public interest advocates, rather than as private litigants whom have claim rights or property interests that apply. The Southeast Alaska Indigenous Transboundary Commission previously filed two legal proceedings against the KSM project in relation to the issuance of the environmental assessment certificate.
READ: Seabridge Gold Sees Substantially Started Designation At KSM Challenged By Indigenous Group
Both the first petition, as well as this petition are expected to be heard together in court as a result of the same issues being raised.
“We have had a week to consider the previous Petition. We are very confident there is ample evidence that the determination was reasonable and appropriate. Since our subsidiary is included as a respondent to the new Petition, we are a party to the proceedings and will aggressively defend against both Petitions,” commented Rudi Fronk, CEO of Seabridge.
Seabridge Gold last traded at $20.32 on the TSX.
Information for this briefing was found via Sedar and the sources 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.
