Seabridge's wholly owned subsidiary, KSM Mining, has agreed to sell a US$255 secured note that would be exchanged at maturity for a silver royalty on its 100%-owned KSM project. 

Seabridge said the proceeds would be used to continue ongoing physical work at the British Columbia project and advance it towards a designation of "substantially started". 

Seabridge is seeking a "substantially started" designation as, according to BC law, a project's Environmental Assessment Certificate is subject to expiry if the project does not have the designation by the deadline specified in the EAC. In KSM's case, that is July 29, 2026. 

"We are planning on staying well ahead of the deadline by getting the work done as early as we can," Seabridge chairman and CEO Rudi Fronk said. 

"The financing provides most of the capital necessary to reach this objective, as well as having the added advantage of cutting time from the construction schedule once a construction decision has been made," he added. 

Seabridge also said that securing the EAC would further de-risk the project and accelerate the construction timetable. 

The key terms of the note and silver royalty include the investors' use of all the principal amount repaid on maturity to purchase a 60% gross silver royalty upon the first to occur of either commercial production at KSM or the 10-year anniversary, or if the EAC expires. 

"KSM is Canada's largest gold-copper-silver development project and an outstanding economic opportunity that we confidently expect to become one of our longest-life silver royalties," managing partner at Sprott Michael Harrison said. 

The transaction was expected to close on March 15. 

With a 52-year mine life, KSM has proven and probable reserves totalling 38.8 million ounces of gold, 10.2 billion pounds of copper, 183Moz of silver and 207Mlbs of molybdenum. 

Seabridge traded on the Toronto Stock Exchange at C$21.14 on February 27. The company has a market capitalisation of C$1.67 billion.