16 February 2022
Not for distribution to U.S. wire services or for dissemination in the United States
Vancouver, BC – Sabina Gold & Silver Corp (SBB.T/SGSVF:OTCQX), (“Sabina” or the “Company”) has announced today that Zhaojin International Mining Co., Ltd. (“Zhaojin”) has elected to exercise its participation right under its Shareholder Agreement with the Company in connection with the Company’s US$95 million (C$120 million) private placement with Orion Mine Finance and Wheaton Precious Metals (the “Offering”),
To maintain its 9.9% ownership of the Company, Zhaojin will purchase approximately 10.1 million common shares of the Company (“Common Shares”) at $1.30 per share by way of a private placement (the “Zhaojin PP”) which would raise an additional C$13 million.
“We are very pleased that Zhaojin continues to invest in the Company and the Back River Project. We look forward to continuing to work with them during this exciting time as we transition into a gold miner,” said Bruce McLeod, President & CEO.
The remainder of the Offering and the Zhaojin PP will close in two further tranches with C$39 million closing later in February, 2022 (the second tranche) subject to TSX approval and C$18 million closing in Q2, 2022 subject to TSX and shareholder approval.
The shares and proceeds related to the Zhaojin PP are additional to the Offering and will off-set future equity requirements. The net proceeds of the Offering and the Zhaojin PP will be used to advance development of the Company’s Back River Gold Project and for working capital and general corporate purposes.