In a news release, Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced that its acquisition of the 3 Aces gold project in the Yukon closed.
"3 Aces is a first rate exploration play with the potential to host a high grade commercially-viable ore body," Seabridge Gold Chairman and CEO Rudi Fronk said in the release. "Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project's positive metallurgy and establishing excellent relationships with local First Nations and communities."
The Toronto-based company purchased the property from Golden Predator Mining Corp. for a total consideration of 300,000 Seabridge common shares, potential future cash payments totaling $2.25 million and a 0.5% net smelter returns royalty on the project to Golden Predator.
Further, when Seabridge grows the NI 43-101 compliant gold resource at 3 Aces to 2.5 million ounces of gold, it will pay Golden Predator another $1 million and at 5 million ounces, it will pay another $1.25 million.
As for what's next for 3 Aces, Seabridge intends to collect and analyze the data "developed by Golden Predator for the targets in the central core area with a view to initiating an aggressive drill program next year," Fronk indicated in the release.
The orogenic gold 3 Aces project spans about 350 square kilometers, encompasses 1,536 claims and is easily accessible. It is high grade and near surface, the company stated.
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