Seabridge Comments on Second Challenge of KSM's Substantially Started Determination
Seabridge Gold faces a second legal challenge against its KSM Project's 'substantially started' determination, filed by SkeenaWild Conservation Trust and Southeast Alaska Indigenous Transboundary Commission. This new petition, similar to the first one filed by Tsetsaut Skii km Lax Ha, challenges the Minister's July 25, 2024 determination as unreasonable. The determination had effectively removed the Project's Environmental Assessment Certificate expiry date of July 29, 2026.
The project received strong support from major Indigenous peoples in the area and local communities. Seabridge's Chairman expressed confidence in defending against both petitions, noting that the determination remains in effect during legal proceedings. A final decision could take a year or more.
Seabridge Gold affronta una seconda sfida legale riguardante la determinazione di 'sostanzialmente avviato' del suo Progetto KSM, presentata dal SkeenaWild Conservation Trust e dalla Southeast Alaska Indigenous Transboundary Commission. Questa nuova petizione, simile alla prima presentata da Tsetsaut Skii km Lax Ha, contesta la determinazione del Ministro del 25 luglio 2024 come irragionevole. La determinazione aveva effettivamente annullato la data di scadenza del Certificato di Valutazione Ambientale del Progetto, fissata per il 29 luglio 2026.
Il progetto ha ricevuto un forte sostegno da parte dei principali gruppi indigeni dell'area e delle comunità locali. Il Presidente di Seabridge ha espresso fiducia nel difendere entrambe le petizioni, sottolineando che la determinazione rimane in vigore durante le procedure legali. Una decisione finale potrebbe richiedere un anno o più.
Seabridge Gold enfrenta un segundo desafío legal respecto a la determinación de 'sustancialmente iniciado' de su Proyecto KSM, presentado por el SkeenaWild Conservation Trust y la Southeast Alaska Indigenous Transboundary Commission. Esta nueva petición, similar a la primera presentada por Tsetsaut Skii km Lax Ha, impugna la determinación del Ministro del 25 de julio de 2024 como irrazonable. La determinación había eliminado efectivamente la fecha de caducidad del Certificado de Evaluación Ambiental del Proyecto, prevista para el 29 de julio de 2026.
El proyecto recibió un fuerte apoyo de importantes pueblos indígenas de la zona y comunidades locales. El Presidente de Seabridge expresó confianza en defender ambas peticiones, señalando que la determinación sigue vigente durante los procedimientos legales. Una decisión final podría tardar un año o más.
Seabridge Gold는 KSM 프로젝트의 '실질적으로 시작됨' 결정에 대한 두 번째 법적 도전에 직면하고 있으며, 이는 SkeenaWild Conservation Trust와 Southeast Alaska Indigenous Transboundary Commission에 의해 제출되었습니다. 이 새로운 청원은 Tsetsaut Skii km Lax Ha가 제출한 첫 번째 청원과 유사하며, 2024년 7월 25일자로 된 장관의 결정을 비합리적으로 도전하고 있습니다. 이 결정은 프로젝트의 환경 평가 인증서 만료일인 2026년 7월 29일을 사실상 제거했습니다.
이 프로젝트는 해당 지역의 주요 토착민들과 지역 사회로부터 강력한 지지를 받았습니다. Seabridge의 의장은 두 청원을 방어하는 데 자신감을 표명하며, 법적 절차가 진행되는 동안 결정이 여전히 유효하다고 언급했습니다. 최종 결정까지는 1년 이상 걸릴 수 있습니다.
Seabridge Gold fait face à un deuxième défi juridique concernant la détermination de 'substantiellement commencé' de son Projet KSM, déposé par le SkeenaWild Conservation Trust et la Southeast Alaska Indigenous Transboundary Commission. Cette nouvelle pétition, similaire à la première déposée par Tsetsaut Skii km Lax Ha, conteste la décision du Ministre du 25 juillet 2024 comme déraisonnable. Cette décision avait en effet supprimé la date d'expiration du Certificat d'Évaluation Environnementale du Projet, fixée au 29 juillet 2026.
Le projet a reçu un fort soutien de la part des principaux peuples autochtones de la région et des communautés locales. Le président de Seabridge a exprimé sa confiance pour défendre les deux pétitions, notant que la décision reste en vigueur pendant les procédures judiciaires. Une décision finale pourrait prendre un an ou plus.
Seabridge Gold sieht sich einer zweiten rechtlichen Herausforderung bezüglich der Feststellung eines 'substanziell begonnenen' KSM-Projekts gegenüber, die von der SkeenaWild Conservation Trust und der Southeast Alaska Indigenous Transboundary Commission eingereicht wurde. Dieses neue Gesuch, ähnlich dem ersten von Tsetsaut Skii km Lax Ha, stellt die Entscheidung des Ministers vom 25. Juli 2024 als unangemessen in Frage. Die Entscheidung hatte effektiv das Ablaufdatum des Umweltbewertungsscheins des Projekts, das auf den 29. Juli 2026 festgelegt war, aufgehoben.
Das Projekt erhielt starke Unterstützung von wichtigen indigenen Völkern in der Region und lokalen Gemeinschaften. Der Vorsitzende von Seabridge äußerte Vertrauen in die Verteidigung gegen beide Petitionen und wies darauf hin, dass die Entscheidung während der rechtlichen Verfahren in Kraft bleibt. Eine endgültige Entscheidung könnte ein Jahr oder länger dauern.
- Strong support from three largest Indigenous peoples and local communities in the project area
- Environmental Assessment Certificate no longer subject to expiry in 2026
- Substantial construction work already completed at KSM Project
- Legal challenges could delay project advancement
- Risk of Minister being required to reconsider the 'substantially started' determination
- Final decision on petition could take over a year
Insights
The second legal challenge against KSM's "substantially started" determination presents minimal risk to Seabridge's operations. The high legal threshold requiring proof of "unreasonableness" rather than mere incorrectness significantly favors the Minister's decision. The strong support from major Indigenous groups and local communities provides robust backing for the determination.
The petitioners' track record of opposition to mining projects and their status as public interest advocates rather than rights holders weakens their position. Even in a worst-case scenario where the petition succeeds, the remedy would only require ministerial reconsideration, during which Seabridge could submit additional evidence of project advancement.
Toronto, Ontario--(Newsfile Corp. - December 2, 2024) - Seabridge Gold Inc. (TSX: SEA) (NYSE: SA) ("Seabridge" or the "Company") announced today that a second and new Petition has been filed in the British Columbia Supreme Court against the Minister of Environment and Climate Change Strategy of British Columbia (the "Minister") and against Seabridge's wholly-owned subsidiary, KSM Mining ULC ("KSMCo"), seeking judicial review of the determination (the "SS Determination"), on July 25, 2024, by the Minister that Seabridge's KSM Project has been "substantially started". The SS Determination resulted in the KSM Project Environmental Assessment Certificate ("EAC") no longer being subject to expiry on July 29, 2026.
This new Petition has been filed by SkeenaWild Conservation Trust and Southeast Alaska Indigenous Transboundary Commission ("SEITC", and collectively, the "New Petitioners"). Although its name includes the word "Commission", SEITC has no regulatory authority of any kind in relation to the SS Determination or the KSM Project. This new Petition, which only challenges the SS Determination on the basis that it was unreasonable, makes essentially the same arguments on reasonableness as the previous one. In addition to alleging that the SS Determination was unreasonable, the New Petitioners are seeking an order that the SS Determination be quashed and remitted to the Minister for reconsideration. The first Petition challenging the SS Determination on the grounds that it was unreasonable, was filed on November 22, 2024 by the Tsetsaut Skii km Lax Ha (see the Company's news release of November 25, 2024). In the hearing on both Petitions, the Petitioners have to establish that the Minister's decision was unreasonable, not simply incorrect. The legislation leaves the Minister with a lot of discretion in making a "substantially started" determination, making the threshold of "unreasonable" even harder to meet.
The New Petitioners are challenging the SS Determination as public interest advocates rather than as private litigants who claim rights or property interests in the KSM Project area. Both groups have a history of vocal opposition to all mining projects within their regions. All three of the Petitioners made submissions to the Minister opposing the Company's application for the SS Determination, making similar arguments as they are making in their Petitions. This is the third legal proceeding brought by SEITC against the KSM Project; the two previous proceedings were brought challenging KSM's 2014 EAC.
Letters expressing strong support of the SS Determination were submitted to the Minister from representatives of the three largest Indigenous peoples in the area of the KSM Project, the Nisga'a Lisims Government, the Tahltan Central Government and the Gitxsan Hereditary Chiefs Office, as well as the larger communities of northwest British Columbia, including the Village of Hazelton, the District of New Hazelton, the Town of Smithers, the District of Stewart, the City of Terrace and the Regional District of Kitimat-Stikine. Seabridge Chairman and CEO Rudi Fronk commented: "It is clear that the New Petitioners do not represent the interests of northwest British Columbia or Canada."
Seabridge has been advised that this new Petition will be combined with the previous Petition and heard together in court due to the same issues being raised. The new Petition differs from the previous Petition in some minor ways, including that the new Petition names KSMCo as a respondent.
A substantial amount of work has been performed at the KSM Project to get construction started, which ultimately is the focus of the SS Determination. As additional considerations, there was widespread support for the SS Determination and the timing of the decision supports advancement of the KSM Project. Mr. Fronk said: "We have had a week to consider the previous Petition. We are very confident there is ample evidence that the determination was reasonable and appropriate. Since our subsidiary is included as a respondent to the new Petition, we are a party to the proceedings and will aggressively defend against both Petitions."
The SS Determination is unaffected by the new Petition and will remain in place if the Minister and KSMCo are successful in defending the SS Determination. Even if the New Petitioners are successful, the order being sought is to require the Minister to return to the "substantially started" determination process and reconsider the reasons for the SS Determination, and then issue a fresh determination. A fresh determination could reaffirm the initial SS Determination or conclude that the KSM Project was not "substantially started" and, if the latter applies, the Company would submit a new application for a "substantially started" determination to which additional work at the KSM Project could be added. We are advised that a final decision on the new Petition could take a year or more.
About Seabridge Gold
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Forward Looking Statements
This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, interpretations, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) there being ample evidence that the SS Determination was reasonable; and (ii) the timing of a final decision on the Petition.
All forward-looking statements are based on Seabridge's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Seabridge's plans or expectations include the risk that: (i) the SS Determination is found to be unreasonable; and (ii) the final decision takes much longer than anticipated, and other risks outlined in statements made by Seabridge from time to time in the filings made by Seabridge with securities regulators. Seabridge disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements.
ON BEHALF OF THE BOARD
"Rudi Fronk"
Chairman & C.E.O.
For further information please contact:
Rudi P. Fronk, Chairman and C.E.O.
Tel: (416) 367-9292 • Fax: (416) 367-2711
Email: info@seabridgegold.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232108
FAQ
What is the latest legal challenge against Seabridge Gold's (SA) KSM Project?
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How long could the legal proceedings take for Seabridge Gold's (SA) KSM Project petitions?
