Seabridge Gold Agrees to Sell Red Mountain Project

 

TORONTO - Seabridge Gold reported that it has signed a letter of intent to sell 100% of its interest in the Red Mountain property located in British Columbia, Canada to BonTerra Resources Inc. for $7.0 million in cash plus a $5.0 million convertible debenture. The transaction is expected to close at the end of September, 2009.

Seabridge President and CEO Rudi Fronk said "BonTerra is in a strong position to take our Red Mountain project forward. They have generated excellent exploration results on contiguous ground which could increase the size of the high-grade Red Mountain project and enhance its economics. We elected to take part of the proceeds of this proposed sale in the form of a convertible debenture so that we can continue to participate in Red Mountain's potential success. Cash proceeds from this transaction will enable Seabridge to continue advancing KSM and Courageous Lake towards feasibility without share dilution."

The company’s address is 106 Front Street East, Suite 400, Toronto, ON M5A 1E1, 416.367.9292, fax: 416.367.2711, email: [email protected].