Vancouver, BC -- Sabina Gold & Silver Corp. (SBB-T) announced today the closing of the previously announced bought deal financing. The offering was comprised of 18,410,000 common shares of the Company (the 'Common Shares') at $1.63 per share.
In addition, the over-allotment option granted to the underwriters was exercised in part for 1,380,750 Common Shares at $1.63 per share. This financing and the over-allotment are closed, bringing total gross proceeds of $32,258,922.50.
The financing was underwritten by a syndicate of underwriters led by BMO Capital Markets and including Canaccord Genuity Corp., Cormark Securities Inc., as co-lead underwriters, and RBC Dominion Securities Inc., Dundee Securities Ltd., Haywood Securities Inc., National Bank Financial Inc. and Paradigm Capital Inc. (collectively, the 'Underwriters'). The Underwriters received a cash commission of 5.0% of the gross proceeds from this financing.
'This financing provides the Company with the ability to continue de-risking Back River by progressing with detailed engineering as well as completing work required for the regulatory phase of the permitting process (namely the Type A water license)' said Bruce McLeod, President & CEO 'Additionally, we remain focussed on work to optimize the project, including metallurgical studies as well as opportunities to unlock the imbedded future growth on this prospective district through desk top and field exploration work. We believe this is the optimal path for continued creation of shareholder value.'
Sabina Gold & Silver Corp
Sabina Gold & Silver Corp. is a well-financed, emerging precious metals company with district scale, world class undeveloped assets in one of the world's most politically stable mining jurisdictions: Nunavut, Canada.
Sabina recently released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River Project. The silver royalty on Hackett River's silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
The Company has over $45 million in its treasury and is currently amending the budget and plans for 2016.
Qualified Person
Wes Carson, P.Eng, Vice-President, Project Development for the Company has reviewed and approved the technical disclosure in this news release in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
For further information please contact:
Nicole Hoeller, Vice-President, Communications
1 888 648-4218
[email protected]
Forward Looking Information
This news release contains 'forward-looking information' within the meaning of applicable securities laws (the 'forward-looking statements'), including the results of testwork, including, but not limited to, gold price, diesel price and exchange rate assumptions, cash flow forecasts, projected capital and operating costs, metal or mineral recoveries, mine life and production rates; the Company's potential plans and operating performance, including plans for the use of proceeds from the financing;; potential production from and viability of the Company's properties; estimates of future production and operating costs; These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the ability of the Company to raise sufficient funds to implement the FS; the effects of general economic conditions; changes in commodity prices including the gold price assumed in the FS; increases in input costs; uncertainty of production and cost estimates for the project; changing foreign exchange rates; actions by government and regulatory authorities; and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licences and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2015 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws. This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.