Impact: Mildly Positive
Seabridge Gold announced that it has entered an agreement to acquire a 100% interest in the 3 Aces gold project in the Yukon from Golden Predator Mining Corp. (TSXV:GPY, Not Covered) (Figure 1). Consistent with its strategy, this well-funded and well-supported company is using troubled markets to opportunely add to its portfolio of assets. We note that this acquisition is accretive to our estimates for Seabridge and we have increased our target to C$50/sh (was C$49/sh). Seabridge’s stock is uniquely leveraged to the gold price and should do well in the coming bull market. Additionally, we believe a JV announcement for KSM could act as a catalyst in the medium-term.