Sabina Gold & Silver Announces $55 Million Bought Deal Financing Closed

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VANCOUVER, British Columbia, June 03, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) reports today that it has completed the previously announced bought deal offering (the “Offering”).

The Offering was fully subscribed and was comprised of a combination of 12,500,000 common shares at $2.00 per share (the “Common Shares”), 2,100,000 flow-through common shares at $2.40 per share (the “Flow-Through Common Shares”), 5,224,000 charity flow-through common shares at $2.68 per share (the “Charity Flow-Through Common Shares”), and 1,638,000 super charity flow-through common shares at $2.90 per share (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”). The Underwriters also elected to exercise their over-allotment option to purchase 2,900,000 Common Shares at $2.00 per share.

In addition to the Offering above, Zhaojin International Mining Co., Ltd. elected to maintain its 9.9% holdings resulting in the issuing of 2,882,082 common shares of the Company at $2.00 per share for gross proceeds of approximately $5.8 million. This tranche of funds is expected to close before June 10, 2020.

Including Zhaojin’s participation, the Company expects to raise a total of approximately $61 million by issuing approximately 27 million shares at an average price of $2.22 per share.

The proceeds from the sale of the Common Shares will be used to advance development of the Company’s Back River Gold Project, including exploration programs, earth works activities to support development of and commencement of development of an exploration decline at Umwelt, completion of detailed engineering, extension of the airstrip at Goose, completion of geotechnical drilling and acquisition of accommodation complex for future mine construction and operations, and for working capital and general corporate purposes.

The gross proceeds from the sale of the Flow-Through Common Shares and Super Charity Flow-Through Common Shares will be used for expenditures which qualify as “Canadian exploration expenses” (“CEE”) and “flow-through mining expenditures” both within the meaning of the Income Tax Act (Canada). The gross proceeds from the sale of the Charity Flow-Through Common Shares will also be used for expenditures which qualify as CEE. The Company will renounce such CEE with an effective date of no later than December 31, 2020.