Sabina Gold & Silver Corp. (SBB.T/SGSVF.OTCQX),
(“
Sabina” or the “
Company”)
reports today that it has completed the previously announced bought
deal offering (the “
Offering”).
The Offering was fully subscribed and was
comprised of a combination of 12,500,000 common shares at $2.00 per
share (the “Common Shares”), 2,100,000
flow-through common shares at $2.40 per share (the
“Flow-Through Common Shares”), 5,224,000 charity
flow-through common shares at $2.68 per share (the “Charity
Flow-Through Common Shares”), and 1,638,000 super charity
flow-through common shares at $2.90 per share (the “Super
Charity Flow-Through Common Shares” and together with the
Common Shares, Flow-Through Common Shares and Charity Flow-Through
Common Shares, the “Securities”). The Underwriters
also elected to exercise their over-allotment option to purchase
2,900,000 Common Shares at $2.00 per share.
In addition to the Offering above, Zhaojin
International Mining Co., Ltd. elected to maintain its 9.9%
holdings resulting in the issuing of 2,882,082 common shares of the
Company at $2.00 per share for gross proceeds of approximately $5.8
million. This tranche of funds is expected to close before June 10,
2020.
Including Zhaojin’s participation, the Company
expects to raise a total of approximately $61 million by issuing
approximately 27 million shares at an average price of $2.22 per
share.
The proceeds from the sale of the Common Shares
will be used to advance development of the Company’s Back River
Gold Project, including exploration programs, earth works
activities to support development of and commencement of
development of an exploration decline at Umwelt, completion of
detailed engineering, extension of the airstrip at Goose,
completion of geotechnical drilling and acquisition of
accommodation complex for future mine construction and operations,
and for working capital and general corporate purposes.
The gross proceeds from the sale of the
Flow-Through Common Shares and Super Charity Flow-Through Common
Shares will be used for expenditures which qualify as “Canadian
exploration expenses” (“CEE”) and “flow-through
mining expenditures” both within the meaning of the Income Tax Act
(Canada). The gross proceeds from the sale of the Charity
Flow-Through Common Shares will also be used for expenditures which
qualify as CEE. The Company will renounce such CEE with an
effective date of no later than December 31, 2020.
The syndicate of underwriters was led by BMO
Capital Markets and RBC Capital Markets, and included Canaccord
Genuity Corp., Echelon Wealth Partners Inc., Industrial Alliance
Securities Inc., National Bank Financial Inc., Paradigm Capital
Inc., Sprott Capital Partners LP., and TD Securities Inc.
Tamesis Partners LLP acted as part of a special
selling group related the Offering.
The Securities were offered pursuant to the
Company's base shelf prospectus dated May 15, 2020 and a prospectus
supplement dated May 21, 2020 filed with securities regulators in
each of the provinces and territories of Canada, and the Common
Shares may also be 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 &
SilverSabina Gold & Silver Corp. is well-financed 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%
owned Back River Gold Project which presents a project that has
been designed on a fit-for purpose basis, with the potential to
produce ~200,000 ounces a year for ~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 October 28, 2015).
The Project received its final Project
Certificate on December 19, 2017. The Project received its Type A
Water License on November 14, 2018 and is now in receipt of all
major authorizations for construction and operations.
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.
With the net proceeds of this financing
(including Zhaojin participation), the Company expects to have
approximately $80 million in cash, cash equivalents and short-term
investments.
For further information, please contact:
Nicole Hoeller, Vice-President, Communications:
1 888 648-4218 nhoeller@sabinagoldsilver.com
This news release has been authorized by the
undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO Suite 1800 –
Two Bentall Centre 555 Burrard Street Vancouver, BC V7X 1M7 Tel 604
998-4175 Fax 604 998-1051 http://www.sabinagoldsilver.com
Forward-Looking Information
This news release contains “forward-looking
information” within the meaning of applicable securities laws (the
“forward-looking statements”), including information pertaining to
the Company's filing of the Preliminary Base Shelf Prospectus,
regulatory approval of the Shelf Prospectus and any potential
future offering(s) of securities pursuant to the Shelf Prospectus
(and the use of proceeds therefor). These forward-looking
statements are made as of the date of this news release. Readers
are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the future
circumstances, outcomes or results anticipated in or implied by
such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur. While we have based these
forward-looking statements on our expectations about future events
as at the date that such statements were prepared, the statements
are not a guarantee that such future events will occur and are
subject to risks, uncertainties, assumptions and other factors
which could cause events or outcomes to differ materially from
those expressed or implied by such forward-looking statements. Such
factors and assumptions include, among others, the effects of
general economic conditions, commodity prices, changing foreign
exchange rates and actions by government and regulatory authorities
and misjudgments in the course of preparing forward-looking
statements. In addition, there are known and unknown risk factors
which could cause our actual results, performance or achievements
to differ materially from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Known risk factors include risks associated with
exploration and project development; the need for additional
financing; the calculation of mineral resources and reserves;
operational risks associated with mining and mineral processing;
fluctuations in metal prices; title matters; government regulation;
obtaining and renewing necessary licenses and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2019 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws.
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