Sabina completes $28.1 million financing, continued support for derisking for Back River

21 December 2018

Sabina Gold & Silver Corp. announced today the closing of the previously announced bought deal financing (the “Offering”). The Offering was comprised of 18,340,000 common shares of the Company (the “Common Shares”) at $1.20 per share as well as an over-allotment for 2,751,000 Common Shares at $1.20 per share (representing 15% of the Common Shares offered pursuant to the Offering) which was exercised in full by the underwriters for total gross proceeds of $25,309,200.In addition, pursuant to a participation rights notice delivered to Zhaojin International Mining Co., Ltd. (“Zhaojin”), Zhaojin has elected to exercise its participation right in relation to the Offering to purchase, by way of private placement, 2,317,443 Common Shares of the Company at C$1.20 per share for total gross proceeds of $2,780,932, to close prior to December 31, 2018.

The purpose and timing of this Offering is to enable Sabina to make financial commitments in 2019 to support activities over the coming months that will maintain the Project’s first gold production schedule.
The net proceeds of the Offering will be used to continue to de-risk the Back River Project by completing the following activities:

  • Construction of the winter ice road from the Port at Bathurst Inlet to the Goose Site in early 2019. Preparation of the winter ice road development started earlier this week with the initial opening of the camps, the building of an air strip in support of a heavy lift cargo campaign in January 2019, and the preparation of the on-site ice road equipment
  • Following construction of the winter ice road, haulage of materials and large construction equipment purchased earlier this year,currently staged at the Port, to the Goose Site
  • High-priority pre-development civil earthworks at the Goose Site
  • Detailed engineering of the process plant required to secure a fixed price design and construction contract (“EPC”) for the processing plant
  • Advancement of remaining licenses, and for working capital and general corporate purposes.