Seabridge Gold Completes Sale of Noche Buena

TORONTO - Seabridge Gold reported that it has completed the sale of its 100% owned Noche Buena gold project in Sonora, Mexico to Minera El Bermejal, S. de R.L. de C.V., an affiliate of Minera Penmont, S. de R.L. de C.V., which operates the La Herradura gold mine in Sonora. Bermejal and Penmont each are owned 56% by Fresnillo plc. and 44% by Newmont USA Limited, a subsidiary of Newmont Mining Corporation. At closing, Seabridge Gold was paid US$25 million in cash. A further US$5 million is payable upon commencement of commercial production from Noche Buena and a 1.5% net smelter royalty is payable on all production sold for US$800 per ounce or greater of gold.
Seabridge Gold President and CEO Rudi Fronk said that the cash proceeds will enable the company to advance its core projects - KSM and Courageous Lake - towards feasibility without share dilution. "We will be looking to make other sales of non-core assets in the months ahead," he said.
The companies address is 106 Front Street East, Suite 400, Toronto, ON M5A 1E1, 416.367.9292, fax: 416.367.2711, email: [email protected].