Seabridge Gold (TSX: SEA) has lined up fresh capital to keep its flagship KSM project moving through the summer, executing an unsecured, short-term loan of up to US$100 million with a strategic investor.
The financing is drawable at Seabridge’s election in minimum increments of US$10 million, carries an interest rate of 7% compounded monthly, and matures on December 31, 2026. If any balance remains outstanding at maturity, the company can repay in cash at any time, or in certain circumstances and subject to TSX approval, in common shares.
For now, the credit facility remains undrawn. Seabridge said it intends to draw on the facility only if needed to shore up liquidity.
The money is earmarked for a busy field season at the wholly owned KSM project in British Columbia’s Golden Triangle, including road building and the drilling, test pitting and sampling needed to advance feasibility-level engineering.
“We are pleased to secure financing to support the significant investments we are making in our summer season work programs at our 100% owned KSM Project,” said Chair and Chief Executive Officer Rudi Fronk.
Seabridge Gold last traded at $34.47 on the TSX.