Seabridge Gold (TSX: SEA)(NYSE: SA) has secured a $100-million (C$137-million) credit line from an unnamed investor to advance its KSM project in British Columbia despite mounting legal uncertainty surrounding one of the world’s largest undeveloped gold-copper projects more than a decade after government approvals.
The unsecured financing carries a 7% interest rate compounded monthly and matures Dec. 31. Seabridge can draw the funds in minimum $10-million tranches to support work at KSM, the company said Monday. It’s an $8.8-billion development about 270 km northwest of Terrace and 950 km northwest of Vancouver in the Golden Triangle region.
The deal comes as the project faces two separate legal hurdles: a B.C. Supreme Court ruling requiring renewed Indigenous consultation over KSM’s “substantially started” status and an ongoing dispute with Tudor Gold (TSXV: TUD) over permits for the Mitchell Treaty Tunnels, a 12.5-km section that crosses Tudor’s Treaty Creek property.
“We are pleased to secure financing to support the significant investments we are making in our summer season work programs,” chair and CEO Rudi Fronk said in a release. “Our 2026 work programs at KSM include building of roads to provide improved access to future infrastructure areas and the collection of geotechnical, metallurgical and environmental data … required to support KSM’s feasibility level design and engineering activities.”
Legal hurdles
Shares in Seabridge Gold gained 0.8% to C$34.76 apiece on Monday morning in Toronto, valuing the company at $3.7 billion. They’ve traded in a 52-week range of $20.86 to $54.29.
Last month, the B.C. Supreme Court ordered the Environmental Assessment Office to reconsider whether KSM had been substantially started after finding the province failed to adequately consult the Tsetsaut Skii km Lax Ha Nation before making its 2024 determination. Separately, B.C. has withheld amendments to permits for the Mitchell Treaty Tunnels until Seabridge and Tudor resolve their dispute over the route.
KSM hosts proven and probable reserves of 2.29 billion tonnes grading 0.64 gram gold per tonne and 0.14% copper for 47.3 million oz. gold, 7.3 billion lb. copper and 160 million oz. silver, according to a 2022 prefeasibility study.
The financing gives Seabridge the flexibility to continue advancing KSM while it seeks a development partner for the project. If the loan remains outstanding at maturity, the company may repay it in cash or, subject to Toronto Stock Exchange approval, with common shares.
Since acquiring KSM from Placer Dome in 2001, Seabridge has invested about $1.2 billion in the project and says it has completed more than $200 million in additional permanent works since applying for substantial-start status in January 2024.
