Seabridge Gold has agreed to sell a secured note for up to 60 percent of silver royalties on its KSM mine project.
Spott Resource and Streaming Corp, and the Ontario Teachers’ Union have purchased the note for 285 million dollars.
A secured note is a type of corporate loan, in which project assets can be used as collateral.
Under the agreement, the investing parties will be able to exchange the note for a 60 percent share of gross silver royalties, upon maturity.
That will occur when either commercial production is achieved at KSM, or at the 10-year anniversary of the note’s issue date.
Until then, KSM will pay an interest fee of 6.5 percent per year.
Seabridge says the agreement will allow them to continue work on key construction prep tasks, and advance their efforts at acquiring an Environmental Assessment Certificate.
Known more for gold and copper, silver accounts for less than 3 percent of KSM’s total projected revenue.
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