7 December 2021
VANCOUVER –Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) reports advancement on project financing for the Goose Mine, the first mine on the 100% owned Back River Gold District in Nunavut, Canada.
Sabina has continued to advance project finance initiatives for the Goose Mine. An indicative project finance term sheet was signed earlier this year and commercial due diligence has now been completed. The proposed project finance facility has also received investment committee approval, subject to completion of legal due diligence and approval of definitive documentation. Concurrently, the Company has also negotiated a streaming term sheet for the Goose Mine.
The Company is currently advancing definitive documentation in connection with both the project finance facility and the streaming transaction. Final definitive documentation is expected to be concluded in January 2022, which would enable construction to commence in the new year.
“After much hard work, we are nearing completion of a major milestone for the Company as we advance towards becoming a gold producer,” said Bruce McLeod, President & CEO. “Considerable due diligence has been completed by all parties, including an independent engineer and the debt partner has received investment committee approval for the facility. While there are still items to be finalized, we are eager to finalize the documentation process and bring both agreements to completion. The focus of our financing package has been to minimize equity dilution. We look forward to sharing the details on the project financing package once finalized.”
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in Nunavut, Canada.
Sabina recently filed an Updated Feasibility Study (the “UFS”) on its 100% owned Back River Gold Project which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, with a post-tax IRR of ~28% and NPV5% of C$1.1B. See “National Instrument (NI) 43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.
The Project received its final major authorization on June 25, 2020 and is now in receipt of all major permits and 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.