UPDATE 1-BonTerra not to buy Seabridge's Red Mountain project
* BonTerra cites inability to raise funds
* Seabridge to explore other options
Oct 16 (Reuters) - Canada's Seabridge Gold Inc (SEA.TO) said mineral explorer BonTerra Resources Inc (BTR.V) will not buy Seabridge's Red Mountain project as it could not raise the necessary funds.
On June 25, Seabridge had signed a letter of intent to sell its stake in the Red Mountain project in British Columbia to BonTerra for C$7 million in cash, plus C$5 million in convertible debentures. [ID:nBNG488403]
Seabridge said it would explore other options for the sale of its interest in Red Mountain.
Shares of Seabridge were up 2.5 percent at C$27.35 Friday afternoon on the Toronto Stock Exchange, while BonTerra shares were down 2 Canadian cents at 23 Canadian cents. (Reporting by Koustav Samanta in Bangalore; Editing by Pradeep Kurup)
