Seabridge Gold (TSX: SEA) (NYSE: SA) completed the acquisition of a 100% interest in the 3 Aces gold project in the Yukon territory, northwestern Canada.
To seal the deal with Golden Predator Mining, Seabridge has to issue 300,000 common shares and agree on potential future cash payments totalling $2.25 million.
3 Aces is on the eastern margin of the Selwyn Basin, a thick package of sedimentary rocks extending across the Yukon which hosts several enormous base metal deposits
In detail, the acquisition agreement provides for payments to Golden Predator of $1 million upon confirmation of a 3 Aces NI-43-101 compliant mineral resource of 2.5 million ounces of gold and a further $1.25 million upon confirmation of an aggregate mineral resource of 5 million ounces of gold. The agreement also grants Golden Predator a 0.5% net smelter royalty on the project.
“We think 3 Aces is a worthy addition to the three outstanding exploration opportunities we already own in British Columbia, Nevada and the Northwest Territories,” Seabridge Gold chairman and CEO, Rudi Fronk, said in a media statement. “Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project’s positive metallurgy and establishing excellent relationships with local First Nations and communities.”
According to Fronk, the company’s current plan is to assemble and evaluate the wealth of data developed by GPY for the targets in the Central Core Area of the project with a view to initiating an aggressive drill program next year.
3 Aces is a district scale, orogenic-gold project consisting of 1,536 claims covering approximately 350 square kilometres in the southeastern part of the Yukon.