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, 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.
Pursuant to the Shareholder Agreement between the Company and Zhaojin International Mining Co., Ltd. (“Zhaojin”) dated December 19, 2017 as amended, upon notice from the Company, Zhaojin has elected to exercise its participation right to purchase up to 2,414,311 Common Shares at of the Company at C$1.95 per Common Share by private placement to maintain its 9.9% holdings in Sabina’s Common Shares (if the over-allotment is exercised in full). Zhaojin may also subscribe for up to 18,653,307 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 to advance development of the Company’s Goose Project at the Back River Gold District with the objective of funding critical path activities needed to be completed in order to maintain the targeted production schedule, including the purchase of certain mining and construction equipment, site infrastructure facilities, structural steel for process plant building and other structures, winter-ice-road equipment, bulk construction supplies, completion of select earthworks at Goose site, construction activities related to bulk fuel storage at the Port and Goose sites to prepare for Project fuel requirements, and for working capital and general corporate purposes.
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