11 February 2022
VANCOUVER –Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) is pleased to announce that it has closed the first tranche of the US$95 million equity private placement to Orion Mine Finance (“Orion”) and Wheaton Precious Metals Corp. (“WPM”) in connection with the previously announced Project Financing Package (the “Financing”) to fund construction and development of the Goose Mine at Sabina’s 100% owned Back River Project in Nunavut, Canada (the “Project”).
The first tranche of the private placement in connection with the US$520 million financing package comprises the issuance of 46,209,769 common shares of the Company to Orion and 12,322,605 common shares of the Company to WPM for total net proceeds of approximately CAD$75.5 million.
“We are very happy with WPM’s increased position and Orion’s addition to Sabina’s shareholder registry,” said Bruce McLeod, President & CEO. “We believe their investment in the Company reflects their confidence in the merits of Goose mine and in Sabina’s ability to execute and deliver the Project.We look forward to continuing to report on our progress as we begin to kick off our 2022 activities”
In connection with the Financing, as previously announced, Sabina executed final documentation with respect to: (i) the provision by Orion of a senior secured project finance debt facility in the principal amount of US$225 million and a gold prepay facility in the amount of US$75 million, (ii) the purchase by Orion of 100% of the annual refined gold production from the Project based on prevailing market prices, (iii) the purchase by Orion, on a private placement basis, of up to US$75 million of Sabina common shares, (iv) a US$125 million gold stream arrangement with WPM and the purchase by WPM on a private placement basis of up to US$20 million of Sabina common shares.
Equity Financings
Orion and WPM have subscribed to a total private placement of 72,732,692 and 19,395,384 common shares of Sabina respectively at a price of C$1.30.This private placement is scheduled to close in three tranches with this being the initial, the second by the end of Q1, 2022 and the third in Q2, 2022. The proceeds of the Financing will be used to fund 2022 development initiatives and procurement commitments and includes repaying the previously announced US$20 million Sprott bridge loan in accordance with its terms.