NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES.
VANCOUVER, British Columbia, May 17, 2018 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp (the “Company”) (TSX:SBB) is pleased to announce the closing of the previously announced non-brokered private placement (the “Financing’). The offering was comprised of 3,355,500 flow-through common shares (the “Flow-Through Common Shares”) at a price of $2.00 per share for gross proceeds of approximately $6.7 million.
“This financing enables us to use flow-through dollars rather than the hard dollars allocated for continued development activities at Back River,” said Bruce McLeod, President & CEO. “This funding provides for an additional 10,000 meters at Back River to follow up on successes from this year’s spring program as well as last year’s program.”
The total gross proceeds of the Financing must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2019.
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed and had approximately C$86.0 million in cash and equivalents as at March 31, 2018. The Company is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina 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 (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015) (the “Study”). At a US$1,150 gold price and a 0.80 (US$:C$) exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
The Project received its final Project Certificate on December 19, 2017. The Project is now in the final regulatory and licensing phase. The Project received its social license by signing a long-term land tenure and Inuit Impact and Benefits Agreement on April 22, 2018.
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.
For further information please contact:
Nicole Hoeller, Vice-President, Communications: 1 888 648-4218
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.