Seabridge Gold Inc. said June 7 that it closed the acquisition of a private company and its Snowstorm gold project, comprising 700 mining claims and 5,800 acres of fee lands in Nevada, from Paulson & Co. Inc. subsidiary PFR Gold Holdings LP.

The company announced a letter of intent for the deal in mid-February. As consideration, Seabridge issued PFR Gold 700,000 shares and 500,000 share purchase warrants, exercisable at C$15.65 per share for four years.

The company will also pay PFR Gold US$2.5 million in cash if it defines compliant resources hosting at least 5 million ounces of gold at Snowstorm, with a further US$5 million in cash due with the delineation of another 5 million ounces of gold.

Seabridge also reported that it staked an additional 260 claims totaling 5,200 acres contiguous to the new Snowstorm claims.