Sabina Gold & Silver Corp. Announces C$35 Million Bought Deal Financing
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VANCOUVER, British Columbia, March 09, 2021 (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
18,000,000 common shares (the “Common Shares”) at a price of C$1.95 per Common Share for gross proceeds of approximately C$35 million (the “Offering”). 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 Common Shares issued to cover over-allotments, if
any. The Offering is expected to close on or about March 16, 2021 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.
The net proceeds from the sale of the Common Shares will be used for procurement of engineering and civil works equipment to maintain the project schedule as laid out in the Updated Feasibility Study filed March 3, 2021 and for working capital and general corporate purposes.
The Common Shares will be offered pursuant to the Company's base shelf prospectus dated May 15, 2020. The terms of the Offering will be described in a prospectus supplement to be filed with securities regulators in each of provinces and territories of Canada, other than Quebec and the Common Shares may also be offered by way of private placement in the United States.
The Common Shares offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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