Sabina Gold & Silver Announces Interim Financial Results for the Quarter Ended June 30, 2020
$75.4 million in cash and short-term investments, pre-development activities commenced
VANCOUVER, British Columbia, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) reports the interim financial results for the
quarter ended June 30, 2020.
“During the quarter, the Company focused on preparing work plans for the remainder of 2020 and re-opening camp,” said Bruce McLeod, the Company’s President & CEO. “Camp was re-opened in late June under a strict COVID-19 Operational Framework. I am pleased to report that camp was re-opened efficiently and is continuing to operate safely under these new protocols. Drilling began in early July with first results expected in the coming weeks.”
The Company continues to closely assess and monitor the COVID-19 situation as it evolves and has undertaken measures to mitigate associated risks, including establishing procedures and protocols to safeguard employees. Given the highly uncertain nature of this situation, the Company is not able to reliably estimate the duration and severity of this pandemic nor the potential impact it could have on the Company’s operating activities and financial position.
Q2 2020 Highlights:
The Company had cash and cash equivalents and short-term investments of $75.4 million at June 30, 2020.
- On June 3, 2020, the Company completed a bought deal prospectus financing comprised of 15,400,000 common shares at a price of $2.00 per share, 2,100,000 flow-through common shares at a price of $2.40 per share, 5,224,000 charity flow-through common shares at a price of $2.68 per share, and 1,638,000 super charity flowthrough common shares at a price of $2.90 per share. Zhaojin International Mining Co., Ltd. (“Zhaojin”) elected to maintain it 9.9% holdings, resulting in the issuance of an additional 2,882,082 common shares of the Company at $2.00 per share. Including Zhaojin’s participation, the Company raised gross proceeds of $60.7 million.
- During the quarter, project development activities were focused on preparing for the reopening of the Goose camp under a COVID-19 Operational Framework. Initiatives to be completed during 2020 include: a) a phased extension of the Goose property airstrip to accommodate larger aircraft to support future construction and underground activities; b) activities to develop an underground ramp for exploration drilling from subsurface; c) procurement of underground mining and ancillary equipment and infrastructure to support the exploration decline program, including the airlift campaign to bring this equipment to site.
- During the quarter, the Company prepared for its summer drill program by opening its Goose camp in late June. The program is planned to include approximately 8,500 meters focused on testing the continuity of the high grade corridor at Umwelt underground, infill and plunge extension at Llama and other new high potential exploration targets within the 8km Goose Property gold complex.
- During the quarter, Sabina received approval to use the primary tailings storage facility as contemplated in the feasibility study. While the Back River Project has been shovel ready for construction, this final authorization is a milestone that enables the planned mining operations at the first mine at Back River.
For the three months ended June 30, 2020, the Company’s net loss of $1.2 million compared with $0.8 million in the comparative quarter in 2019, the increase driven by higher share based payments and lower net finance income offset by a lower deferred income tax expense.