Seabridge Gold (TSX: SEA; NYSE: SA) is zeroing in on a joint venture partner for its KSM copper-gold project in British Columbia, CEO Rudi Fronk said.
The company aims to name a partner “before the end of this year,” Fonk told The Northern Miner last month during the Mining Forum Americas in Colorado Springs, Colo. A formal process that began with seven qualified majors is now down to three.
“For the first time there is genuine competitive tension around the asset,” Fronk said.
The timeline follows de-risking milestones at KSM, including a “substantially started” designation last year that locks in key permits over the life of the project. Seabridge is advancing early works – a power tie-in to BC Hydro’s Northwest Transmission Line, geotechnical programs for major structures and value engineering toward a feasibility study.
Capital costs have probably risen from the 2022 estimate, but Fronk said stronger gold and copper prices expand project economics, keeping returns compelling. A $100 million (C$140 million) financing earlier this year, including $20 million from an unnamed strategic investor, is funding site work while the company works on completing a deal.
A JV structure is expected to bring balance-sheet strength and construction depth while preserving exposure for Seabridge shareholders, Fronk said. Although risks remain, such as cost inflation, a neighbour’s tunnel right-of-way dispute and the need to harmonize designs through a final feasibility, Fronk said the “window is now wide open” for a transformative partnership that would move KSM into full development.
Watch the full interview below with The Northern Miner’s Western Editor, Henry Lazenby:
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