Silver Wheaton now owns 14.2% of Sabina....Newz follows...
Sabina Announces $12,870,000 Private Placement With Silver Wheaton
Friday December 15, 9:00 am ET
THUNDER BAY, ON--(MARKET WIRE)--Dec 15, 2006 -- SABINA SILVER CORPORATION (TSX VENTURE:SBB.V - News) ("Sabina") is pleased to announce a non-brokered private placement financing whereby Silver Wheaton Corp. ("Silver Wheaton"), a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange, has agreed to purchase up to 7,800,000 Units (the "Units") of the Company at a price of C$1.65 per Unit, for gross proceeds of up to $12,870,000. Each Unit consists of one (1) common share and one-half (1/2) of a non-transferable share purchase warrant. Each whole warrant entitles Silver Wheaton to purchase one (1) common share of the Company at a price of $2.75 per share for a period of forty-eight (48) months from the closing date, providing that if the closing price of the common share is above C$5.00 for 15 consecutive trading days, Sabina may accelerate the expiry of the warrants. As part of this investment, Sabina has granted the right to Silver Wheaton, under certain conditions, to maintain its pro rata interest in Sabina in the event that Sabina issues additional equity securities in the future.
As a result of this transaction, Silver Wheaton will own 7,800,000 common shares of Sabina and 3,900,000 share purchase warrants of Sabina representing approximately 14.2% of the outstanding shares of Sabina on an undiluted basis, and 19.9% after giving effect to the exercise of the share purchase warrants held by Silver Wheaton. Silver Wheaton shall acquire a right of first refusal over any silver stream sale by Sabina from its existing projects going forward. Closing of this offering is subject to receipt of all regulatory and third party approvals and consents, including the approval of the TSX Venture Exchange.
Sabina Silver Corporation is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District, and several projects in the Red Lake gold camp. The proceeds from the private placement will be used to further advance Sabina's Hackett River Project towards permitting, feasibility and ultimately production, all subject to rigorous and ongoing engineering and environmental review, and for general corporate purposes.
Silver Wheaton Corp. is the only public mining company with 100% of its operating revenue from silver production. They expect to have annual silver sales of approximately 16 million ounces in 2007, increasing to 20 million ounces by 2009 and thereafter.
ON BEHALF OF THE BOARD OF DIRECTORS
SABINA SILVER CORPORATION
Per: Abraham Drost
President & Director
401-1113 Jade Court
Thunder Bay, Ontario
P7B-6M7
Ph: (807) 766-1799
info@sabinasilver.com
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