BC Supreme Court Decides Seabridge Gold's KSM Substantially Started Determination Reasonable

Executive Summary

• The Supreme Court of British Columbia upheld the BC Environmental Assessment Office's (EAO) determination that the KSM project was "substantially started" as of July 24, 2024, but ordered a 90-day consultation period with the Tsetsaut Skii km Lax Ha (TSKLH) First Nation before the EAO reconsiders the determination.
• A second petition challenging the determination, filed by SkeenaWild Conservation Trust, was dismissed by the Court.
• Seabridge confirmed that construction and work at KSM will continue uninterrupted during the consultation process, highlighting an additional $208 million in permanent works expenditures since January 2024, bringing total project spending to $1.2 billion.

Key Details

• Court Ruling (TSKLH Petition): The Supreme Court of BC found the EAO's "substantially started" determination reasonable but ruled that insufficient consultation occurred with the Tsetsaut Skii km Lax Ha (TSKLH). The EAO must provide a specific 90-day period for TSKLH to submit written responses regarding the substantial start date, after which the EAO must formally reconsider the determination.
• Court Ruling (SkeenaWild Petition): The petition filed by SkeenaWild Conservation Trust challenging the same determination was fully dismissed.
• Project Continuity: Seabridge confirmed that all work plans and permanent physical improvements at the KSM project will continue during the EAO's consultation and reconsideration period.
• Capital Expenditures: Since filing for "Substantially Started Status" in January 2024, Seabridge has incurred an additional $208 million in expenditures on permanent works at KSM.
• Total Project Spend: Cumulative expenditures at the KSM project now total $1.2 billion.
• Indigenous Support: The company reiterated its appreciation for the ongoing support of the Nisga'a Nation, Tahltan Nation, and the Gitxsan Hereditary Chiefs Office regarding the KSM project.

Notable Quotes

• Rudi Fronk, Chair & CEO: "We are satisfied that the Court has confirmed the reasonableness of the EAO determination. We will continue to execute our work plans for KSM and look forward to meeting with the EAO to receive an update on their additional consultation activities in due course. Meanwhile, the permanent physical improvements we have made at KSM which were considered appropriate for the determination have been significantly enhanced. We remain appreciative of the continued support of the Nisga'a and Tahltan Nations, and the Gitxsan Hereditary Chiefs Office, for KSM."