Seabridge Gold Options Grassy Mountain Project to Calico Resources
TORONTO - Seabridge Gold reported that it has entered into a non-binding, exclusive Letter of Intent with Calico Resources Corp. (Calico) pursuant to which Seabridge has agreed, subject to the settlement and execution of a definitive option agreement, to grant to Calico an option to acquire a 100% interest in the Grassy Mountain Project. To exercise the option, Calico must issue to Seabridge 2,000,000 of its common shares following TSX Venture Exchange approval; 4,000,000 shares at the first anniversary and 8,000,000 shares when the Project has received the principle mining and environmental permits necessary for the construction and operation of a mine. In addition, after the delivery of a NI 43-101 compliant Feasibility Study on the Project, at the sole election of Seabridge, Calico must either grant Seabridge a 10% Net Profits Interest or pay Seabridge Cdn$10 million in cash.