15:28:07 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Sabina Gold & Silver Corp
Symbol SBB
Shares Issued 251,828,181
Close 2018-03-12 C$ 1.72
Market Cap C$ 433,144,471
Recent Sedar Documents

Sabina Gold loses $3.8-million in 2017

2018-03-13 08:16 ET - News Release

Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED 2017

Sabina Gold & Silver Corp. has released its financial results for the quarter and year ended Dec. 31, 2017.

"Two thousand seventeen was an exceptional year for Sabina," said Bruce McLeod, the company's president and chief executive officer. "The receipt of a positive NIRB recommendation and concurring minister's decision result in the receipt of our project certificate for Back River in December last year. This marks the end of the environmental assessment phase and five years of rigorous review. We have now submitted or are in the process of submitting our other licence and work authorization applications to move the project forward. Additionally, we had further success in 2017 with our drilling programs and have continued to demonstrate the potential for adding mine life and enhancing project economics at the Goose property. We also announced a new significant shareholder in December as Zhaojin International Mining invested approximately $66.1-million into the company. All of these events were major catalysts for the company in 2017, and set us up to continue to advance the project in 2018. Camps are open, and we have commenced preconstruction infrastructure works and exploration programs at site. We look forward to reporting on our accomplishments as we move through 2018."

2017 highlights:

  • The company had cash and cash equivalents and short-term investments of $32.4-million at Dec. 31, 2017.
  • On Dec. 5, 2017, the Minister of Indigenous and Northern Affairs Canada accepted the Nunavut Impact Review Board's (NIRB) recommendation (received in July, 2017) that the Back River project should proceed to the regulatory and licensing phases. The company subsequently received the final project certificate from the NIRB on Dec. 20, 2017, enabling the company to move the project forward to the licensing phase.
  • On Dec. 11, 2017, the Nunavut Water Board commenced public review of the Type A and Type B water licence applications of the company related to the initial mine development, mine construction and operation of the project.
  • On Dec. 19, 2017, the company announced an investment by Zhaojin International Mining Co. Ltd. to purchase 24.93 million common shares of the company at a price of $2.65 per share for a total investment of $66.1-million. The financing was completed on Jan. 19, 2018, whereby the company received net proceeds of $62.1-million after financing costs of $4-million.
  • On Oct. 18, 2017, the company jointly announced with the Kitikmeot Inuit Association completion of a binding term sheet for land tenure and Inuit benefits for the Back River project. The term sheet sets out the principal terms that are to be included in a definitive framework agreement, which includes several agreements containing obligations as defined by the Nunavut agreement on land claims, including an Inuit impact and benefits agreement. The framework agreement and other underlying agreements are expected to be completed in the first half of 2018.
  • During the year, the company also completed two flow-through equity financings for total gross proceeds of $12.2-million. The total gross proceeds from these financings must be used to incur Canadian exploration expenditures as defined by the Income Tax Aca (Canada) by Dec. 31, 2018.
  • During the year the company completed a phased exploration program on the Back River project. Initially planned as a 7,000-metre spring drill program, positive results from the program resulted in an expanded second program for a total of 12,603 metres in 22 holes in 2017. The results of this drilling successfully demonstrated the potential for growth of the existing deposits and the discovery of a new significant mineralization target, the deep iron formation or DIF horizon.
  • For the year ended Dec. 31, 2017, the company reported a net loss of $3.8-million or two cents per share.

Financial results

For the year ended Dec. 31, 2017, the company reported a net loss of $3.8-million, favourable by $2.3-million compared with the same period of 2016. The decrease in the loss year over year was primarily the result of a writedown of the Wishbone properties in 2016 ($7.1-million), offset by higher operating expenses ($2.2-million) and higher deferred tax expense ($3.10-million) in 2017 compared with 2016.

For the full Dec. 31, 2017, year-end financial statements and management's discussion and analysis, please see the company's website or visit SEDAR.

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is well financed, with approximately $94.5-million in cash and equivalents, and is an emerging precious-metals company with district scale, advanced, high-grade gold assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.

Sabina released a feasibility study on its 100-per-cent-owned Back River gold project, a project that has been designed on a fit-for purpose basis, with the potential to produce approximately 200,000 ounces a year for about 11 years with a rapid payback of 2.9 years ("Technical report for the initial project feasibility study on the Back River gold property, Nunavut, Canada," dated Oct. 28, 2015). At a $1,150 (U.S.) gold price and an 0.80 (U.S. dollar to Canadian dollar) exchange rate, the study delivers a potential aftertax internal rate of return of approximately 24.2 per cent with an initial capital expenditure of $415-million.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.