In June 2000, Seabridge entered into an agreement with Placer Dome to acquire a 100% interest in KSM for (i) 500,000 Seabridge common shares valued at C$0.40 per share; (ii) 500,000 common share purchase warrants, exercisable by Placer Dome at C$2.00 per share for two years; and (iii) a 1% NSR on the Project, capped at C$4.5 million. Seabridge is obligated to purchase the 1% NSR from the royalty holder for C$4.5 million in the event that a positive feasibility study demonstrates a 10% after tax IRR. The transaction closed in June 2001 following Placer Dome obtaining a satisfactory release from the government of its environmental obligations associated with the project. Total historic (not National Instrument 43-101 compliant) mineral resources estimated at the project by Placer Dome at that time was 3.4 million ounces of gold and 2.7 billion pounds of copper.