Sabina Gold & Silver Announces Interim Financial Results for the Quarter Ended June 30, 2020 - Seite 2
For the six months ended June 30, 2020, the Company reported a net loss of $2.0 million compared with $6.1 million in the comparative period in 2019. The difference was largely the result of a mineral property write-down of $5.7 million on the Company’s non-core Red Lake mineral properties in 2019 but also impacted by lower net finance income and a lower deferred income tax recovery in 2020.
For the full June 30, 2020 interim financial statements and Management’s Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com or on SEDAR.
Red Lake Properties
Subsequent to the quarter end, the Company and Prosper Gold Corp. (“Prosper”) negotiated an agreement whereby Sabina granted Prosper an option to acquire 100% interest in its Golden Sidewalk and Skinner gold properties in the Red Lake mining district of Ontario. The granting of this option enables Sabina to maintain an interest in the Red Lake properties while not diverting resources from the Company’s main focus at the Back River Project.
The Option Agreement on the properties provides Prosper an option to earn 100% interest in the properties over a four year period by paying Sabina $50,000 in cash, up to 1.5 million Prosper common shares (on a post consolidation basis) completing a total of $2.6 million of work on the properties.
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015).
The Project received its final Project Certificate on December 19, 2017. The Project received its Type A Water License on November 14, 2018 and its listing to enable deposition of tailings on Schedule 2 of the Metals and Diamond Mining Effluent Regulations on June 25, 2020. The Company is now in receipt of all major authorizations for construction and operations.