Sabina Gold & Silver (SBB-T) May 20, '16 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.
Bruce McLeod, President & CEO
555 Burrard Street, Suite 375
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
Sabina Gold & Silver Corp.
Nicole Hoeller
Vice-President, Communications
1 888 648-4218
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com |
