Seabridge Gold (TSX:SEA) has secured a US$100 million ($142.9 million) loan to fund this year’s summer work program at its Kerr-Sulphurets-Mitchell (KSM) Copper-Gold Project in British Columbia, Canada, while it continues to search for a development partner.
The loan, which can be drawn in minimum tranches of US$10 million, carries an interest rate of 7% compounded monthly. Interest will be capitalised, with the facility maturing on 31 December 2026.
Seabridge did not disclose the lender.
“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,” Chair and CEO Rudi Fronk says.
This year’s work program includes construction of access roads, drilling, test pitting, and sampling to support feasibility-level engineering and mine design.
The financing provides short-term funding while Seabridge continues its search for a joint venture partner.
Located in British Columbia’s Golden Triangle, KSM is one of the world’s largest undeveloped gold-copper projects. Earlier this year, the provincial government designated it a priority project, citing its economic significance.
A 2022 Prefeasibility Study outlined a 33-year mine life capable of producing about 1 million ounces of gold, 178 million pounds of copper, and 3 million ounces of silver annually.
Although KSM has received provincial and federal environmental approvals, the project continues to face legal challenges and opposition from Indigenous communities, leaving its development timeline uncertain.
Seabridge Gold is a Canadian mining company focused on acquiring and developing large, early-stage North American gold projects.
Write to Jackson Chen at Mining.com.au
Image: Seabridge Gold
