20:04:19 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Sabina Gold & Silver Corp
Symbol SBB
Shares Issued 226,888,181
Close 2018-01-19 C$ 2.08
Market Cap C$ 471,927,416
Recent Sedar Documents

Sabina Gold closes 9.9% investment by Zhaojin

2018-01-22 10:18 ET - News Release

Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES CLOSING OF 9.9% INVESTMENT BY ZHAOJIN INTERNATIONAL MINING CO., LTD.

Sabina Gold & Silver Corp. has closed the 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 approximately $66.1-million in a private placement. Zhaojin International now owns approximately 9.9 per cent of the company's issued and outstanding common shares on a non-diluted basis. Zhaojin International is a subsidiary of Zhaojin Mining Industry Co. Ltd., which is a leading Chinese gold producer and one of China's largest gold smelting companies.

"We are pleased to welcome Zhaojin as a new shareholder to the company. As experienced gold miners, we also look forward to their technical input as we advance the Back River gold project. This investment by Zhaojin is a significant step towards the equity requirements to fund the project. We are very pleased with our new financial partnership and look forward to advancing Back River towards production," said Bruce McLeod, president and chief executive officer of Sabina.

Development activities for 2018 will focus on continuing to derisk the project by:

  • Completing preconstruction earthworks;
  • Early procurement commitments;
  • Logistical improvements, including air and sea mobilization;
  • Building the project execution team.

Additionally, the company plans on a significant exploration program to follow up on 2017 successes and to assess new targets. Key exploration objectives for 2018 are focused on:

  • Optimizing and expanding the Vault zone;
  • Continuing to define the continuity and extension at Llama;
  • Continuing to drill test the concept of the deeper iron formation at Llama and Umwelt;
  • Continuing Echo stepout drilling and scoping of resource expansion potential;
  • Testing the Goose Main Trend extension;
  • Developing drilling approach for targets on the George and Boulder claim blocks.

The company plans to mobilize crews and equipment for the 2018 winter exploration campaign at the end of February, 2018. Activities and budgets for 2018 will be announced in mid-February, 2018.

In connection with the financing, Sprott Asia acted as adviser on the transaction, BMO Capital Markets acted as financial adviser and Gowling WLG was retained as legal adviser for Sabina.

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is a well-financed, emerging precious metal 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, which presents a project that has been designed on a fit-for-purpose basis, with the potential to produce approximately 200,000 ounces a year for approximately 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 Oct. 28, 2015).

In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River project.

The company now has approximately $93-million in cash and equivalents.

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