Sabina Gold & Silver Corp. (TSX:SBB) announced today the closing of the previously announced bought deal flow through financing. The offering was comprised of 3,150,000 common shares of the Company at $1.75 per share.

In addition, the over-allotment option granted to the Underwriters (as defined below) was exercised for 320,000 Common Shares at $1.75 per share. This financing and the over-allotment are closed, for total gross proceeds of $6,072,500.

The financing was underwritten by a syndicate of underwriters led by Canaccord Genuity and including, Paradigm Capital Inc., Cormark Securities Inc., Echelon Wealth Partners Inc. and Haywood Securities Inc.  The Underwriters received a cash commission of 5.0% of the gross proceeds from this financing.

“This financing enables the Company to do some potentially high impact drilling that could demonstrate opportunities for additional mine life at the Goose Project that could provide extended benefits to all Sabina stakeholders,” said Bruce McLeod, President & CEO “We are also continuing to work with all parties to progress the environmental assessment review of the project towards a Nunavut Impact Review Board recommendation in July 2017.”

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 newest, 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 (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015). 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.

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 approximately C$45 million in cash and equivalents (including the net proceeds of this financing).