Seabridge Gold Inc. (SA) saw its stock price plummet 5.17% in the pre-market session on Monday, as the company faces a legal challenge from an Indigenous group regarding its flagship KSM mining project.

The Tsetsaut Skii km Lax Ha (TSKLH) Indigenous group has filed a petition in the British Columbia Supreme Court against the Province of British Columbia. The petition seeks a judicial review of the determination by the Chief Executive Assessment Officer (CEAO) that Seabridge's KSM project has been "substantially started".

If the "substantially started" determination is overturned, it could potentially delay the project's timeline. However, Seabridge's management believes the determination was reasonable and plans to defend its validity. The current determination remains in place while the legal process plays out, which could take a year or more to resolve.