Sabina Gold & Silver Announces C$49 Million Bought Deal Financing

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VANCOUVER, British Columbia, May 19, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets, under which the underwriters have agreed to buy on a bought deal basis, a combination of common shares (the “Common Shares”), flow-through common shares (the “Flow-Through Common Shares”), charity flow-through common shares (the “Charity Flow-Through Common Shares”), and super charity flow-through common shares (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”) to provide the Company with gross proceeds of approximately C$49 million (the “Offering”). 12,500,000 Common Shares will be offered at a price of C$2.00 per Common Share, for gross proceeds of approximately C$25 million. 2,100,000 Flow-Through Common Shares will be offered at a price of C$2.40 per Flow-Through Common Share for gross proceeds of approximately C$5 million. 5,224,000 Charity Flow-Through Common Shares will be offered at a price of C$2.68 per Charity Flow-Through Common Share for gross proceeds of approximately C$14 million. 1,638,000 Super Charity Flow-Through Common Shares will be offered at a price of C$2.90 per Super Charity Flow-Through Common Share for gross proceeds of approximately C$5 million. The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of Securities issued as Common Shares to cover over-allotments, if any. The Offering is expected to close on or about June 3, 2020 and is subject to Sabina receiving all necessary regulatory approvals.

The Company has provided a financing notice to Zhaojin International Mining Co., Ltd. (“Zhaojin”) about the exercise of Zhaojin’s participation right (the “Zhaojin Participation Right”) under its Shareholder Agreement with the Company dated December 19, 2017, as amended. Pursuant to the Zhaojin Participation Right, Zhaojin has a 48 hour right to elect to purchase such number of Common Shares at the Offering Price by way of a private placement to either maintain its 9.9% holdings in Sabina’s Common Shares or to subscribe for such number of Common Shares as is equal to 33% of the Common Shares sold under the Offering and prior private placements in which Zhaojin did not participate at the 33% level.