Seabridge Gold Recovers $4.4 Million after Successfully Challenging Tax Ruling in BC Supreme Court

Core Viewpoint - Seabridge Gold Inc. successfully challenged a tax ruling, recovering $4.4 million from the Canada Revenue Agency (CRA) after the Supreme Court of British Columbia reversed CRA's denial of BC Mineral Exploration Tax Credits for 2010 and 2011, with further recoveries anticipated [1][4]. Financial Recovery - The company received a refund related to $15.8 million of exploration expenditures claimed as qualifying mining exploration expenses under the BC Income Tax Act, which were initially denied by CRA [3]. - The Supreme Court ruling indicated that over 92% of the claimed expenses qualified as mining exploration expenses, leading to the return of funds plus interest [4]. Future Tax Claims - Seabridge is appealing a CRA decision that denied tax benefits for exploration expenses incurred from 2014 to 2016, which were also claimed as flow-through mining expenditures [5]. - The company believes that the reasoning from the recent Supreme Court decision should apply to the 2014-2016 expenditures, and it is working with tax counsel to reverse the reassessments and recover $9.4 million paid to CRA [7]. Industry Context - The CEO highlighted the complexities of navigating Canadian mining regulations, emphasizing the importance of understanding tax and mineral rights, permitting, and ESG factors [2]. - The company aims for a more supportive stance from CRA regarding the mining industry in the future [2]. Company Overview - Seabridge Gold holds a 100% interest in several North American gold projects, including the KSM project and Iskut project in British Columbia, and others in the Northwest Territories and Yukon [8].