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What: Shares of Seabridge Gold
So what: Royal Gold will make a private placement investment in Seabridge for 1.019 million shares at $30.39 per share, a premium to yesterday's price. It will also be given a C$100 million option to acquire a 1.25% royalty on all gold and silver from the KSM project.
Now what: The share sale funds will be used to optimize the KSM project while the company looks for a buyer or partner in the project. Investors were giddy about the news early in the day, but shares tailed off later in the day and are up just 6% as of this writing. Long term, I have to agree with Motley Fool Alpha , which thinks this stock has further to run once milestones of the KSM project are cleared.
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