Sabina Gold & Silver Corp. (TSX:SBB) announced today the completion of the previously announced non-brokered private placement. The placement was comprised of 2,661,600 Flow-through Common Shares at $0.50 per share for gross proceeds of approximately $1.3 million.
“We are pleased that this financing bolsters our already strong treasury,” said Bruce McLeod, President & CEO. “We believe that the work we are doing at Back River continues to de-risk and add value to the project and that the use of flow-through funds to facilitate some of this work is a more effective use of capital. We are also pleased that we were able to complete the financing at a 21% premium to the 20 day volume weighted average price (at the time of the announcement), and that our insider ownership has been significantly increased. We look forward to reporting continuing advancements on the Back River Gold Project through the course of the year.”
The total gross proceeds must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2016.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an 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 has 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 approx. 350,000 ounces a year for approx. 10 years with a rapid payback of 2.2 years. At a US$1,200 gold price and a 0.87 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 22% with an initial CAPEX of $695 million. For more information see the Technical Report and Feasibility Study for the Back River Gold Property, Nunavut dated June 22, 2015 filed on www.sedar.com.
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.
Sabina expects to end the year with approximately $16 million in cash and equivalents.
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