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TORONTO - Tudor Gold Corp. has filed a petition in the British Columbia Supreme Court challenging a government license that allows Seabridge Gold Inc. (TSX:SEA) (NYSE:SA) to build tunnels through Tudor’s mineral claims, Seabridge announced Tuesday. Seabridge, with a market capitalization of $2.52 billion and currently trading near its 52-week high of $25.45, has seen remarkable growth with a 150% return over the past six months.
The petition seeks to void a September 2024 License of Occupation granted by the BC Ministry of Water, Land and Resource Stewardship. The license permits Seabridge to construct its Mitchell Treaty Tunnels (MTT), two 23-kilometer parallel passages that would connect the east and west sides of Seabridge’s KSM mining project. According to InvestingPro data, Seabridge maintains a strong financial position with a healthy current ratio of 4.24, indicating robust liquidity to support its development plans.
Approximately 12.5 kilometers of the planned tunnel route passes through Tudor’s Treaty Creek Property claims. Tudor alleges the tunnels "will destroy the economic viability" of its project and is asking the court to declare that a License of Occupation cannot interfere with mineral claims holder rights.
Seabridge maintains that while Tudor owns rights to minerals within its claims area, the actual land belongs to the Province of British Columbia. The company compared the tunnel construction to other infrastructure projects like roads or pipelines that cross public land.
"In granting the 2024 LoO, WLRS has exercised its discretion to support the KSM Project, which has its environmental assessment approvals, a pre-feasibility study demonstrating economic viability, substantial investments in early construction and many permits," said Rudi Fronk, Seabridge’s Chair and CEO, in the press release.
This legal action is Tudor’s third concurrent challenge to the tunnel authorizations. The license remains in effect while the case proceeds through court.
The KSM project is located in northwest British Columbia’s "Golden Triangle" region, an area known for significant mineral deposits.
In other recent news, Seabridge Gold has announced significant developments regarding its exploration efforts. The company confirmed the presence of a large copper-gold porphyry deposit at its Snip North target, with drilling results from the first three holes showing consistent mineralization. This drilling is part of a 12,000-meter program aimed at expanding zones identified in 2024, and each hole has successfully extended the mineralized area. In another development, Seabridge Gold is facing a legal challenge from Tudor Gold Corp. Tudor has filed a lawsuit against the Province of British Columbia over mineral rights related to Seabridge’s KSM Project. The legal action disputes the validity of a conditional mineral reserve that restricts Tudor from interfering with Seabridge’s planned Mitchell Treaty Tunnels, which are set to pass through Tudor’s Treaty Creek Claims. These developments highlight ongoing activities and challenges for Seabridge Gold in its mining endeavors.
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