Core Viewpoint - Seabridge Gold Inc. successfully appealed the Canada Revenue Agency's disallowance of $15.8 million in exploration expenditures under the BC Mining Exploration Tax Credit program, with the British Columbia Supreme Court ruling that these expenses qualify under the program [2][3]. Group 1: Court Decision and Financial Implications - The British Columbia Supreme Court allowed Seabridge's appeal, validating that expenses aiding in determining the economic viability of a mineral resource qualify under the BC METC program [2][3]. - The court's decision indicates that approximately $3.1 million in refunds (plus interest) under the BC METC program are at stake, and Seabridge was awarded costs for its successful appeal [2][3]. - The ruling also has implications for Seabridge's previous flow-through share financings from 2013-2015, where the CRA had reduced claimed expenditures by approximately $19.1 million [4]. Group 2: Definition of Qualified Expenses - The court focused on the definition of "qualified mining exploration expenses" under the BC METC program, concluding that expenses related to determining the economic viability of a mineral resource meet the purpose test [3]. - Qualified expenses included open pit and block cave mine plans, engineering investigations, infrastructure design, and metallurgical testing, while only report compilation expenses were disallowed [3]. Group 3: Company Statements and Future Actions - The Chairman and CEO expressed satisfaction with the court's decision, indicating it validates the company's approach to claiming expenses and may lead to the return of funds [5]. - The company plans to consult with legal counsel to resolve the reassessment of flow-through share expenditures based on the court's reasoning [4][5]. - Seabridge holds a 100% interest in several North American gold projects, including the KSM and Iskut projects located in British Columbia [5].