In April 2011, Seabridge Gold entered into a formal agreement granting Calico Resources Corp. an option to acquire a 100% interest in the Grassy Mountain Project located in Malheur County, Oregon. In February 2013, Calico exercised its option to acquire 100% of the Grassy Mountain Project. In consideration for the sale of Grassy Mountain, Seabridge was issued common shares in Calico and retained a 10% net profits interest (“NPI”) in the Grassy Mountain Project. Seabridge holds an option to “put” the 10% NPI to Calico for US$10 million in cash at the point the project is fully permitted and a final feasibility study has been completed.
In July 2016, Paramount Gold Nevada Corp. (NYSE: “PZG”) acquired Calico Resources. As a result, Seabridge retains an 8% share position in PZG as well as the 10% NPI in the Grassy Mountain Project, subject to the Put Option described above. In January 2017, Rudi Fronk, Chairman and CEO of Seabridge Gold, was appointed non-executive Chairman of PZG.
For updates on Grassy Mountain, please visit the PZG website.