Seabridge Gold's KSM Tunnel Authorizations Face Third Legal Challenge from Tudor Gold

Rhea-AI Summary

Seabridge Gold (NYSE: SA) said Tudor Gold filed a Petition in British Columbia Supreme Court on October 7, 2025 seeking judicial review of a September 2024 Licence of Occupation (the 2024 LoO) that authorizes construction and operation of the KSM Project's Mitchell Treaty Tunnels (MTT).

The MTT are two 23 km parallel tunnels, with about 12.5 km passing through Tudor's Treaty Project mineral claims. Tudor asks the court to sever the 2024 LoO rights over those claims and to quash WLRS's decision, alleging procedural unfairness and claiming the MTT would destroy the Treaty Creek Project's economic viability. Seabridge says the 2024 LoO replaces a 2014 licence, protects Tudor's mineral rights for spoil storage, and remains in effect unless successfully overturned.

Positive

• MTT plan: two 23 km parallel tunnels
• Approximately 12.5 km of MTT route crosses Treaty Project claims
• 2024 LoO replaces earlier 2014 licence and remains in force pending court outcome
• KSM holds environmental assessment approvals and a pre-feasibility study

Negative

• Tudor filed a Petition on October 7, 2025 seeking to quash the 2024 LoO
• Tudor asserts MTT would destroy Treaty Creek Project economic viability
• This is Tudor's third separate legal action challenging MTT authorizations

Insights

Senior Natural Resource Legal Analyst

Seabridge faces a material procedural legal challenge to a key tunnel licence that could affect construction access through mineral-claimed land.

Seabridge, its subsidiary KSM Mining ULC, the Province (WLRS) and Tudor Gold are in litigation over the 2024 Licence of Occupation that authorizes construction of the Mitchell Treaty Tunnels (MTT). Tudor seeks declarations that the licence cannot interfere with a mineral claims holder, asks that rights across Tudor’s Treaty Project Claims be severed, and asks the court to quash WLRS’s decision; Tudor alleges procedural unfairness or unreasonableness. The 2024 LoO replaced a 2014 LoO and covers a narrow corridor where roughly 12.5 km of the planned two 23 km parallel tunnels would cross Treaty Project Claims.

The business mechanism at stake is statutory land authorization versus mineral-claim rights: WLRS granted a provincial occupation licence to permit infrastructure across Crown land that overlies mineral claims; Tudor contends that such a licence cannot lawfully impair a mineral claims holder’s rights. The Province’s decision remains in effect while the petition proceeds. Seabridge states the LoO terms protect Tudor’s mineral rights and frames the LoO as routine infrastructure authorization, noting the KSM Project has environmental assessment approvals, pre-feasibility work, and various construction permits.

Key dependencies and risks hinge on the court’s legal interpretation and outcome. If the court finds the LoO invalid or severs provisions, the MTT corridor rights across the Treaty Project Claims could be lost or narrowed, which would materially constrain construction plans for the MTT segment that traverses Tudor’s claims. Conversely, if WLRS and Seabridge successfully defend the LoO, the licence will remain operative. Tudor currently pursues three separate legal actions aimed at MTT authorizations; that fact increases litigation risk and parallel legal exposure for the project.

Watch for the court’s rulings on the petition, any orders affecting the 2024 LoO, and the status of Tudor’s other lawsuits; these items will directly determine near-term construction rights for the MTT. The presence of existing environmental assessment approvals and multiple permits for portions of the MTT is relevant factual context to monitor alongside judicial outcomes.

It Seeks to Void Licence of Occupation

Toronto, Ontario--(Newsfile Corp. - October 7, 2025) - Seabridge Gold Inc. (TSX: SEA) (NYSE: SA) (the "Company") announced today that Tudor Gold Corp. ("Tudor") has filed a Petition in the British Columbia Supreme Court against the British Columbia Ministry of Water, Land and Resource Stewardship ("WLRS") and the Company and the Company's wholly-owned subsidiary that owns 100% of the KSM Project, KSM Mining ULC (together with the Company, "Seabridge"), seeking judicial review of the September, 2024, determination by WLRS to grant a Licence of Occupation ("2024 LoO") across mineral claims that are part of Tudor's Treaty Creek Property (the "Treaty Project Claims") for the construction and operation of the KSM Project's Mitchell Treaty Tunnels ("MTT").

The 2024 LoO provides Seabridge with the right to occupy a narrow corridor in which it proposes to construct and operate the MTT. The 2024 LoO was a replacement of a prior Licence of Occupation that had been issued to Seabridge in 2014 over the same land. The MTT are two 23 km long parallel tunnels planned to connect the east and west sides of the KSM Project Mine Site. Approximately 12.5 km of the MTT route pass through the Treaty Project Claims.

In its Petition, Tudor is seeking declarations that: (1) a Licence of Occupation cannot interfere with the rights of a mineral claims holder; (2) all provisions of the 2024 LoO that grant Seabridge rights across the Treaty Project Claims are severed from the 2024 LoO; and, (3) an order quashing WLRS's decision to grant the 2024 LoO. The Petition includes an allegation that WLRS's decision to grant the 2024 LoO was procedurally unfair or unreasonable. The Petition also asserts that construction of the MTT requires Seabridge to have a right to the Treaty Project Claims since, according to Tudor: "If constructed according to its current plan, the MTT will destroy the economic viability of the Treaty Creek Project and remove all reasonable uses of Tudor's property."

As a mineral claims holder, Tudor owns the rights to the minerals within the area of its mineral claims. However, the land that the Treaty Project Claims covers is land owned by the Province of British Columbia. The terms of the 2024 LoO are designed to protect Tudor's rights to the minerals within its claims; requiring Seabridge to store the small amount of material excavated during MTT construction within the Treaty Project Claims under Tudor's ownership. Construction of the MTT is similar to construction of roads, pipelines, railways, or other infrastructure across public land. In its Petition, Tudor is essentially asserting that the Province can't authorize the construction of infrastructure through land owned by the Province if there is a mineral claim covering it. If true, that would render large portions of British Columbia unavailable for construction of infrastructure without the consent of mineral claims holders. The statutory regime is not set up that way.

"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 for construction of infrastructure, including portions of the MTT. KSM has therefore been determined to be in the interests of British Columbia. Considering that the Treaty Creek Project not only does not have environmental assessment approvals or a preliminary economic assessment, but has not even articulated a comprehensive project development plan, I am confident that WLRS has acted appropriately in authorizing Seabridge to use Provincial land for the MTT," said Seabridge's Chair and CEO, Rudi Fronk. He added: "We have attempted to find terms to avoid a conflict like this with Tudor, but their demands have been unreasonable. Tudor now has three concurrent, separate legal actions all directed at voiding authorizations for the MTT. In our view, if Tudor thinks it must bring three separate legal actions, it probably lacks confidence in the success of any one of them."

For reference, here are our news releases of July 14, 2025 and October 3, 2025 responding to Tudor's previous MTT challenges.

The 2024 LoO is currently unaffected by the filing of the Petition and will remain in place if the Province and the Company successfully defend the 2024 LoO.

About Seabridge Gold

Seabridge holds a 100% interest in several North American gold projects. Seabridge's principal asset, the KSM project, and its Iskut project, are located in Northwest British Columbia, Canada's "Golden Triangle", the Courageous Lake project located in Canada's Northwest Territories, the Snowstorm project in the Getchell Gold Belt of Northern Nevada and the 3 Aces project set in the Yukon Territory. For a full breakdown of Seabridge's Mineral Reserves and Mineral Resources by category please visit the Company's website at http://www.seabridgegold.com.

Neither the Toronto Stock Exchange, New York Stock Exchange, nor their Regulation Services Providers accepts responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE BOARD
"Rudi Fronk"
Chair & C.E.O.

For further information please contact:
Rudi P. Fronk, Chair 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/269423

FAQ

What did Tudor Gold file against Seabridge (SA) on October 7, 2025?

Tudor filed a Petition in BC Supreme Court seeking judicial review to quash the September 2024 Licence of Occupation for the MTT.

How much of the Mitchell Treaty Tunnels route crosses Tudor's Treaty Project claims?

About 12.5 km of the planned 23 km parallel MTT tunnels cross the Treaty Project mineral claims.

Is the 2024 Licence of Occupation for the MTT currently in effect for Seabridge (SA)?

Yes. The 2024 LoO remains in place unless the Province and Seabridge fail to defend it successfully in court.

What legal remedy does Tudor seek regarding the 2024 LoO for SA's KSM MTT?

Tudor asks the court to sever provisions granting Seabridge rights over Treaty Project claims and to quash WLRS's decision authorizing the 2024 LoO.

What permits and studies does KSM have that Seabridge (SA) cites in defense?

Seabridge cites KSM's environmental assessment approvals and a pre-feasibility study demonstrating economic viability.

How many separate legal actions has Tudor brought challenging the MTT authorizations?

Seabridge says Tudor has launched three concurrent, separate legal actions aimed at voiding MTT authorizations.