Seabridge Gold Options Red Mountain Project To Revolution Resources

(RTTNews) - Seabridge Gold Inc (SA) said Tuesday it has entered into an option agreement with Revolution Resources Corp, whereby Revolution can acquire a 100% interest in Seabridge's Red Mountain Gold Project located near Stewart, B.C.

Under the terms of the agreement, Revolution can acquire Seabridge's interest in Red Mountain by:

(i) issuing to Seabridge 29,733,000 shares of Revolution representing 19.9% of the issued and outstanding shares of Revolution post issuance as of today;

(ii) paying to Seabridge $2 million cash in staged payments ($1 million payable within 90 days and $1 million within 1.5 years);

(iii) incurring $7.5 million in exploration and development expenditures over three years ($2.5 million per year).

Revolution has the right to extend the deadline for expenditure of the final $2.5 million by one year upon payment to Seabridge of $250,000.

Upon the commencement of commercial production, Revolution will make an additional one-time $1.5 million cash payment to Seabridge and Seabridge will also retain the right to acquire 10% of the annual gold production from the Property at a cost of $1,000 per ounce up to a maximum of 500,000 ounces produced (50,000 ounces to Seabridge).

Alternatively, at Seabridge's sole option, Seabridge may elect to receive a one-time cash payment of $4 million at the commencement of production in exchange for the gold metal stream interest.

The transaction will be subject to the approval of Revolution shareholders and the Toronto Stock Exchange.