Project developer Seabridge Gold subsidiary KSM Mining has closed the sale of a $150-million secured note to Sprott Resource Streaming and Royalty.

The funds $150-million, which equates to about C$200-million, will enable the company to complete the physical works required to achieve the “substantially started” designation from the provincial government. This will ensure continuity of the KSM project’s approved environmental assessment certificate for the life of the project.

Essentially the same secured note/royalty structure was used last year to raise $225-million from Sprott Streaming and the Ontario Teachers' Pension Plan to kick start the “substantially started” programme.

"This new $150-million in financing, coupled with the $225-million we raised from Sprott Streaming and Ontario Teachers' Pension Plan last year, provide the capital we believe is needed to achieve "substantially started" status well before July 2026.

“It also has the added advantage of cutting time from the construction schedule once a construction decision has been made. KSM's estimated low operating costs mean that the royalty is expected to have a minimal impact on the project's projected financial returns.

“Furthermore, this funding does not require share dilution and therefore furthers our long-standing strategy of providing the industry's best leverage to gold as measured by ounces of gold reserves and resources per share,” said chairperson and CEO Rudi Fronk.

He explained that the new funding would enable the firm to complete the switching station and related work required for connecting KSM to BC Hydro's Northern Transmission Line for construction and operation of the mine.

Access to green energy will substantially enhance KSM's sustainability and carbon profile.

“Proceeds from the transaction will also enable us to continue providing significant work for companies owned and managed by our Indigenous partners in the KSM project, an important ESG objective,” he said.