Seabridge Gold has acquired four million common shares of Banks Island Gold by private issuance after entering an option agreement with respect to its Seabridge Gold's Red Mountain Project located in British Columbia, Canada.
The common shares represent about 15.4% of the outstanding shares of Banks Island.
The firm has acquired the shares as part of the initial payment due under its option agreement with Banks Island.
Under the terms of the option agreement, Banks Island may acquire 100% of Seabridge Gold's interest in the Red Mountain Project.
As a part of the deal, Banks Island will pay $450,000 and issue Seabridge Banks Island's shares upon signing the agreement. A further $11.45m must then be handed over to Seabridge in staged payments before 3 February 2015.
Seabridge holds a 100% interest in several North American gold resource projects and its principal assets are the KSM property located near Stewart, British Columbia, and the Lake gold project located in Canada's Northwest Territories.