March 23, 2011 / 3:05 PM / 7 years ago

UPDATE 1-Calico intends to buy Seabridge Gold's Oregon mine

* Seabridge to grant Calico option to buy 100 percent

* Calico to issue 2,000,000 shares after execution of definitive agreement (Follows alerts)

March 23 (Reuters) - Canadian miner Calico Resources Corp said it plans to buy the Grassy Mountain Project in Oregon owned by rival Seabridge Gold Inc .

Seabridge agreed, subject to the settlement and execution of a definitive option agreement, to grant Calico the option to buy a 100 percent interest in the gold mine project.

Under the terms of the agreement, Calico will issue 2,000,000 shares after the execution of a definitive agreement, 4,000,000 shares on the first anniversary of the execution of the agreement and 8,000,000 shares, when the project receives the permits for the construction and operation of a mine.

No other terms were disclosed.

Vancouver, British Columbia-based Calico’s shares were trading down nearly 9 percent at 52 Canadian cents on Wednesday morning on the Toronto Venture Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Prem Udayabhanu)

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