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Friday, August 6, 2010

Seabridge Gold (AMEX:SA) to Get Huge Cash Infusion?

The recent announcement by China they're looking for strong mining and gold mining companies to invest in has brought attention to a number of mining firms, with one of them being Seabridge Gold (AMEX:SA), which is sitting on enormous reserves via their Kerr-Sulphurets-Mitchell project, with the need of an estimated $3.4 billion to develop the resource.

With their attention elsewhere, gold mining giants Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) aren't showing any love to Seabridge, opening the door for investment from elsewhere, which should definitely be China, at least in part.

China is interested in investing in larger deposits, especially gold, so that narrows the companies they would obviously target to invest in.

To show the attraction of Seabridge's KSM project, it holds an estimated 30 million ounces of gold, 133 million ounces of silver, 7 billion pounds of copper, and 210 million pounds of molybdenum. What's not to like about it?

There are few resources like that available at this stage of development in the world, so it would be assumed they're in the running for Chinese investment sometime in the near future.

Few financial outlets would be willing to take a chance on this type of project, and even fewer companies have the resources to invest in them.

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