Sabina Gold & Silver Corp. (TSX:SBB) (OTCQX:SGSVF) has announced that it has completed a bought deal offering with a syndicate of underwriters led by BMO Capital Markets.

The Offering was fully subscribed and was comprised of 71,000,000 common shares of the Company at $1.55 per share. In conjunction, the underwriters exercised their over-allotment option to purchase up to an additional 15% or 10,650,000 Common Shares at $1.55 per share for total gross proceeds (including the over-allotment) of C$126,557,500.

Additionally, Zhaojin International Mining Co., Ltd. elected to participate in this financing which will result in the issuance of 7,797,813 common shares of the Company at $1.55 per share for additional gross proceeds of C$12,086,610.15. This tranche of funds is subject to TSX approval. Further, pursuant to the underwriters exercising their over allotment option, Zhaojin has the right to subscribe for an additional 1,173,749 common shares at $1.55 for gross proceeds of $1,819,310.95.

Comprehensive Project Financing Package Arranged

On February 8^th and subsequently, the Company announced comprehensive project financing comprised of:

• A US$225 million senior secured debt facility with Orion Mine Finance;
• A US$75 million gold prepay facility with Orion;
• A US$125 million gold stream arrangement with Wheaton Precious Metals Corp.;
• A US$75 million equity private placement with Orion;
• A US$25 million equity private placement with Wheaton;
• A US$100 million bought deal financing (the Offering above); and
• Participation from Zhaojin International Mining Co. Ltd in the aggregate amount of ~US$21 million, including its participation in this Offering.

As noted in the Feb 8^th press release, a condition prior to the advancement of financing under the Orion credit facilities and the Wheaton stream arrangement, was for Sabina to arrange additional equity financing of US$105 million. The Company has now satisfied this obligation.

“Including debt, stream and equity, we have now arranged a total of approximately US$646 (C$807) million in project financing,” said Bruce McLeod, President & CEO “This additional equity enables us to advance procurement of critical items and re-align our budgets and programs for 2022, which we look forward to announcing in the coming weeks.”

The net proceeds from the sale of the Common Shares will be used to advance development of the Company’s proposed Goose Mine, continued procurement of equipment needed for construction and operations, advancement of civil works to support site infrastructure and for working capital and general corporate purposes.

The underwriters will receive a 5% commission in relation to this Offering.

The Common Shares under the Offering were offered pursuant to the Company’s base shelf prospectus dated May 15, 2020 and a prospectus supplement dated March 23, 2022, filed with securities regulators in each of the provinces and territories of Canada (except Quebec), and have also been offered by way of private placement in the United States.

The Securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

About Sabina Gold & Silver

Sabina Gold & Silver Corp. is an emerging gold mining company that owns 100% of the district scale, advanced, high grade Back River Gold District in Nunavut, Canada.

Sabina recently filed an Updated Feasibility Study on its first mine on the district, the Goose Mine, which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, with a post-tax IRR of ~28% and NPV5% of C$1.1B. See “National Instrument (NI) 43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.

Since the UFS, completion of detailed geotechnical test work on the tailings samples and the inclusion of a high-capacity tailings thickener, the tailings storage capacity of the Echo open pit has increased sufficiently to enable the decision to construct the mill at a 4,000 tpd capacity at the outset. This, in addition to optimized equipment selection and detailed engineering has reduced the cost of the expansion from C$17m to C$10m when compared to the UFS.

The Project received its final major authorization on June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.

The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the Kitikmeot Inuit Association and has committed to various sustainability initiatives under the agreement.

On February 8^th and subsequently, the Company announced comprehensive project financing comprised of:

• A US$225 million senior secured debt facility with Orion Mine Finance;
• A US$75 million gold prepay facility with Orion;
• A US$125 million gold stream arrangement with Wheaton Precious Metals Corp.;
• A US$75 million equity private placement with Orion;
• A US$25 million equity private placement with Wheaton;
• A US$100 million bought deal financing (the Offering above); and

Participation from Zhaojin International Mining Co. Ltd in the aggregate amount of ~US$21 million.