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SABRE GOLD ANNOUNCES SALE OF ROYALTY FOR US$7 MILLION

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SABRE GOLD ANNOUNCES SALE OF ROYALTY FOR US$7 MILLION

 

 

 

 

 

Sabre Gold Mines Corp. (TSX: SGLD) (OTCQB: SGLDF) announces the sale of the 1% net smelter returns royalty it holds on the Kerr-Addison Mine claims owned by Gold Candle Ltd. for cash proceeds of US$7 million. In connection with the sale, the Company terminated the previously announced proposed sale of the GC Royalty (October 24, 2022) and will pay the agreed upon break fee of US$500,000.

 

The Company intends to use the net proceeds of the sale of this non-core asset to improve the viability of our key assets. Accordingly, the Company will buy back two thirds of the 4.5% gross production royalty on the Company’s Copperstone Mine, settle US$2 million of the Company’s outstanding debt and add the remaining cash balance to the Company’s treasury.

 

“This cash sale allows the Company to achieve its stated objectives of improving our balance sheet while also improving the projected economics of the Copperstone Mine,” said CEO and President Andrew Elinesky, “Along with our recently closed financing and the sale of another minor non-core asset we are in a much stronger position to accelerate the development of our fully permitted asset in Arizona.”

 

In addition, the Company anticipates that their current payable debt will be extended by 18 months from the current due date of December 31, 2023.

 

About Sabre Gold Mines Corp.

 

Sabre Gold is a diversified, multi-asset near-term gold producer in North America which holds 100-per-cent ownership of both the fully licensed and permitted Copperstone gold mine located in Arizona, United States, and the Brewery Creek gold mine located in Yukon, Canada, both of which are former producers. Management intends to restart production at Copperstone followed by Brewery Creek in the near term. Sabre Gold also holds other investments and projects at varying stages of development.

 

Sabre Gold’s two advanced projects have approximately 1.5 million ounces of gold in the Measured and Indicated categories, and approximately 1.2 million ounces of gold in the Inferred category.

 

Additionally, both Copperstone and Brewery Creek have considerable exploration upside with a combined land package of over 230 square kilometers that will be further drill tested with high-priority targets currently identified. Sabre Gold is led by an experienced team of mining professionals with backgrounds in exploration, mine building and operations.

 

Posted January 30, 2023

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