NewmontFresnillo buy Noche Buena

first_imgSeabridge Gold has signed a letter of intent to sell its 100% owned Noche Buena project in Sonora, Mexico to Minera Penmont, a joint venture between Fresnillo and Newmont USA, a wholly owned subsidiary of Newmont Mining. The project boasts an Indicated resource of 26.6 Mt grading 0.74 g/t Au (633,000 oz of gold) and 18.6 Mt (Inferred) grading 0.61 g/t (364,000 oz of gold). There is excellent infrastructure and access and it is located in jurisdiction favourable to mine permitting.Terms of the sale are $25 million in cash at closing, a further $5 million upon commencement of commercial production from Noche Buena and a 1.5% net smelter royalty payable on all production sold for $800/oz of gold or greater. The transaction is subject to completion of definitive closing documentation and normal closing conditions, which are expected to be completed within the next two months.Seabridge President and CEO Rudi Fronk said that the cash proceeds will enable the company to advance its core projects – KSM and Courageous Lake – towards feasibility without share dilution. “We will be looking to make other sales of non-core assets in the months ahead,” he said.J.P. Morgan Securities Inc. acted as financial advisor to Seabridge in connection with the transaction.last_img

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