Sabina Gold & Silver Corp. Closes C$35.1 Million Bought Deal Financing
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VANCOUVER, British Columbia, March 16, 2021 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) reports today that it has closed a bought deal financing with a syndicate of underwriters co-led by BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. (the “Co-Lead Underwriters”) and including Sprott Capital Partners LP (“Sprott” and together with the Co-Lead Underwriters, the “Underwriters”), under which the Underwriters have bought 18,000,000 common shares of the Company (the “Common Shares”) at a price of C$1.95 per Common Share for gross proceeds of approximately C$35.1 million (the “Offering”).
Additionally, pursuant to the Shareholder Agreement between the Company and Zhaojin International Mining Co., Ltd., Zhaojin elected to maintain its 9.9% holdings in Sabina wherein it will purchase, by private placement, 2,117,640 Common Shares of the Company at C$1.95 per Common Share for gross proceeds of approximately $4.1 million. The Zhaojin private placement is expected to close on or about March 22, 2021.
Given the seasonal nature of the project’s logistics and in order to maintain the project’s targeted production schedule, this financing was critical to enable the Company to commit to long lead time procurement items in time for this year’s sealift. The proceeds will also be used to complete various earthworks and other activities.
Procurement items include:
- Phase I camp accommodation (250 beds);
- Steel and cladding for the mill, truck shop and crusher buildings;
- Primary and secondary crushers;
- Phase I of the open pit mining fleet;
- Winter ice road equipment;
- Ancillary construction equipment; and
- Continued civil works at the Port and Goose Project sites.
“We are pleased to have completed this financing which enables us to secure certain long lead items to maintain our execution schedule and targeted first gold production in Q1, 2024,” said Bruce McLeod, President & CEO. “With these funds in hand, we are now working to finalize budgets and work programs for 2021. A crew has been mobilized and opened camp and has begun the resupply of fuel and other consumables required for the year. While we are still operating under rigid COVID protocols, we anticipate camp being ready for activities in the coming weeks. We also continue to re-fresh the debt process with various parties with a view to securing total project financing and making a production decision this year.”