SEABRIDGE GOLD INC. TO ACQUIRE SNIPGOLD CORP. BY WAY OF PLAN OF ARRANGEMENT
Seabridge Gold Inc. (SEA.T) and Snipgold Corp. (SGG.V) have entered into a definitive agreement dated April 18, 2016, pursuant to which Seabridge has agreed to acquire all of the issued and outstanding common shares of SnipGold by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia).
Rudi Fronk, Seabridge’s chief executive officer and chairman, said: “The board of directors of Seabridge believes the proposed transaction will enhance our exploration potential in an area where our technical team has built up significant expertise. This proposal also meets our transaction test of immediately increasing our gold resource ownership per share. Our KSM project has geological similarities to SnipGold’s Iskut project and the two properties are near enough to each other to offer synergies in terms of personnel and infrastructure.
“This business combination offers SnipGold shareholders the opportunity to maximize the potential value of their Iskut property by accessing the technical and financial resources needed to explore, engineer and permit their project. SnipGold shareholders will also benefit from Seabridge’s more senior exchange listings and greater liquidity. In our view, the proposal offers shareholders of the combined company the potential for enhanced capital appreciation with exposure to a larger asset base in B.C.’s prolific Golden Triangle.”
Patrick Soares, chairman of SnipGold, said: “SnipGold’s board of directors believes that our loyal shareholder base will benefit from this combination of companies. We are pleased by the premium that shareholders are receiving from Seabridge, which we think is in recognition of not only the exploration efforts of SnipGold management, but the underlying value of SnipGold’s property. Seabridge has the ability to fund the project going forward with minimal dilution to its shareholder base.”
John Zbeetnoff, president and chief executive officer of SnipGold, said: “I am pleased the SnipGold project will pass to a mid-tier company that has the funding capacity to build upon our technical efforts that advanced the understanding of the area. Our project offers Seabridge excellent high-grade gold and bulk-tonnage resource expansion and discovery potential at several drill-ready targets.
“I want to thank the employees and consultants of SnipGold for the loyalty and sacrifice they have shown the company during the last few difficult years. I also want to thank our shareholders and board of directors, for their support. As well, I thank the B.C. Ministry of Mines, the Ministry of Environment and the Tahltan First Nation for working collaboratively with SnipGold management through the years. Without the patience and faith entrusted in management by stakeholders, we would not have been able to advance the company to this stage.”