Seabridge Gold Renews At-The-Market Offering: A Strategic Move for Capital Flexibility

Seabridge Gold Inc. (TSX: SEA) (NYSE: SA) has announced the renewal of its At-The-Market (ATM) offering, providing the company with a flexible and cost-effective way to raise capital as needed. The renewed ATM facility, managed by Cantor Fitzgerald & Co. and RBC Capital Markets, allows Seabridge to sell common shares through at-the-market distributions for up to US$100 million on the New York Stock Exchange (NYSE). The ATM Facility will be effective until February 2027, aligning with Seabridge's current US$750 million Shelf Registration Statement. The proceeds will be used for non-flow through eligible exploration, project advancement, potential acquisitions, working capital, and general corporate purposes.

The renewal of the ATM facility is a strategic move by Seabridge Gold, enabling the company to maintain financial flexibility and raise capital efficiently. The ATM structure offers several key advantages, including lower costs and minimal market impact due to gradual, discretionary share issuance, flexibility to capitalize on favorable market conditions and share price movements, reduced execution risk compared to large, single-tranche offerings, and the ability to match capital raises with actual funding needs, minimizing cash drag.

Seabridge Gold's Chairman and CEO, Rudi Fronk, noted that the company has had similar ATM facilities in place for many years. "This agreement replaces a previous agreement which has lapsed. We have found that our ATM programs in the past have provided us with considerable flexibility to raise funds on an efficient basis, when needed. Any share issuance under the ATM is fully disclosed in our financial statements."

The renewed ATM facility provides Seabridge Gold with the opportunity to optimize the allocation of proceeds to advance its projects and acquisitions, given the current market conditions and geopolitical landscape. A significant portion of the proceeds should be allocated towards advancing Seabridge's key projects, such as the KSM and Iskut projects in Northwest British Columbia. The KSM project, in particular, is the world's largest undeveloped gold project by resources, with 88.7M oz M&I plus 71.5M oz inferred, and 19.46 billion pounds of copper resources in the M&I categories plus 38.5 billion pounds in the inferred category. Allocating funds to these projects will help Seabridge unlock their full potential and bring them closer to production.

A portion of the proceeds should also be dedicated to exploration activities, both at existing projects and potential new acquisitions. This will help Seabridge grow its resource base and identify new opportunities for future development. For example, the Snowstorm project in the Getchell Gold Belt of Northern Nevada and the 3 Aces project in the Yukon Territory are promising exploration targets that could benefit from additional funding.

With the proceeds, Seabridge can also explore strategic acquisitions that complement its existing portfolio and strengthen its position in the mining sector. By acquiring high-quality assets, Seabridge can increase its resource base, diversify its project pipeline, and create synergies with its existing operations.

In conclusion, the renewal of the ATM facility is a strategic move by Seabridge Gold, providing the company with a flexible and cost-effective way to raise capital as needed. By optimizing the allocation of proceeds to advance its projects and acquisitions, Seabridge can effectively grow its resource base, strengthen its position in the mining sector, and maintain a strong financial foundation.