Seabridge recovers $3.2M after winning B.C. tax dispute

[Ben Graham]

Seabridge Gold (TSX: SEA) (NYSE: SA) says it has recovered C$4.4 million ($3.2 million) from a British Columbia Supreme Court ruling that reversed a previous decision by the Canada Revenue Agency (CRA) to deny the company’s tax credits for 2010 and 2011.

Toronto-based Seabridge had received a refund for the C$15.8 million ($11.4 million) in exploration expenditures incurred in the two years, which it claimed as qualifying expenses under the BC Income Tax Act that are eligible for tax credits under the BC Mineral Exploration Tax Credits (BC METC) program. However, the CRA later denied the claims, arguing that the expenditures did not meet the program criteria.

The miner subsequently challenged the CRA’s decision, and its appeal was heard before the BC Supreme Court in late 2024. In March 2025, a judge ruled largely in favor of Seabridge, having determined that 92% of the claimed expenses qualified for the BC METC credits, and ordered the CRA to return the funds to the company, plus interest.

In a press release Wednesday, Seabridge confirmed it has now fully recovered the funds, which the CRA held during the appeal process and accrued interest, and received reimbursement of trial costs. It added that the March ruling should trigger a further recovery of C$9.4 million ($6.8 million) from the CRA for rejecting for the same reasons its flow-through exploration expenditures incurred in 2014-2016.

“We are pleased to have had our interpretation of the Income Tax Act confirmed and to have the BC METC challenge behind us,” Rudi Fronk, chairman and CEO of Seabridge Gold, stated.

“We now look forward to resolving CRA’s larger denial of flow-through mining expenditures that we renounced to investors. We believe the CRA should take more supportive positions regarding our industry going forward,” he added.

Seabridge’s principal asset, the KSM (Kerr–Sulphurets–Mitchell) project, is situated in BC’s Golden Triangle region. It hosts one of the world’s largest undeveloped gold deposits and also holds significant silver, copper and molybdenum resources.

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Shares of Seabridge Gold advanced 3.5% on news of the fund recovery. By midday, it traded at C$33.20 apiece with a market capitalization of C$3.3 billion ($2.4 billion).