On April 15, 2014, Seabridge entered into an Option Agreement with IDM Mining (f.k.a. Revolution Resources) whereby IDM could acquire a 100% interest in the Red Mountain Gold Project located in northwestern British Columbia. Under the terms of the option agreement, IDM issued Seabridge 29,733,000 common shares representing 19.9% of the issued and outstanding shares of IDM post issuance as of the date of the Agreement and has paid Seabridge $2 million cash in staged payments. Subsequent to these payments, Seabridge sold all of the IDM common shares.
In May 2017, IDM completed the acquisition of a 100% interest in Red Mountain and Seabridge recovered $1 million in cash held as reclamation security by the Province of British Columbia. Under the terms of the sale agreement, IDM is further obligated to make a $1.5-million cash payment to Seabridge upon the commencement of commercial production at Red Mountain, and Seabridge retains the right to acquire 10 per cent of the annual gold production from the project at a cost of $1,000 (U.S.) 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.
In March 2019, IDM was acquired by Ascot Resources who now owns 100% of the Red Mountain Project, subject to underlying agreements and royalties.
For updates on Red Mountain, please visit the Ascot Resources website.