On October 24, 2011, Seabridge Gold entered into an Option Agreement with Orsa Ventures Corp. whereby Orsa could purchase Seabridge's 100% interest in the Quartz Mountain Project and all of Seabridge's undivided 50% beneficial joint venture interest in the adjacent Angel's Camp Gold Property, located in Lake County, southern Oregon. Under the Option Agreement, Seabridge has already been paid $2.5 million in cash.
In September 2013, Alamos Gold Inc. (TSX and NYSE “AGI”) acquired Orsa along with the option to acquire Quartz Mountain. To complete the acquisition of the Quartz Mountain Project, Alamos must pay Seabridge: (i) an additional $3,000,000 in cash or Alamos common shares (at Seabridge's election), within five business days of completing a National Instrument 43-101 Feasibility Study on Quartz Mountain; and (ii) a further $15,000,000 in cash or, at Seabridge's election, a 2% net smelter royalty on Quartz Mountain within 60 days of determining that a mine has been permitted and bonded.
For updates on Quartz Mountain, please visit the Alamos Gold website.