Sabina Gold & Silver Announces Financial Results For the Year Ended December 31, 2020
Cash and cash equivalents and short-term investments of $45 million
VANCOUVER, British Columbia, March 31, 2021 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX) reports the financial results for the year ended December
“2020 was a year of significant achievement for Sabina,” said Bruce McLeod, the Company’s President & CEO. “Despite challenging work conditions due to our COVID operational framework, we were able to complete extensive work on both the exploration and project development fronts. Our work in 2020 enabled us to complete an updated mineral resource estimate, resulting in a million ounce increase in the reserve estimate in the recently filed updated feasibility study. Additionally, Sabina was the only company with large scale camp operations in the north not to have any COVID cases during the past year. Camp opened for the 2021 season in early March, with budgets and work programs to be announced shortly.”
- The Company ended the year with cash and cash equivalents and short-term investments of $45.0 million.
- Subsequent to year end, on March 16, 2021, the Company completed bought deal prospectus financing of 18,000,000 common shares at a price of $1.95 per common share for gross proceeds of $35.1
million. Additionally, pursuant to the Shareholder Agreement between the Company and Zhaojin International Mining Co., Ltd. (“Zhaojin”), Zhaojin elected to maintain its 9.9% holdings in Sabina. On
March 22, 2021, the Company completed the Zhaojin private placement for 2,117,640 Common Shares $1.95 per Common Share for gross proceeds of approximately $4.1 million. Net proceeds of the
financings was approximately $36.9 million.
- In Q3 2020, the Company commenced work on an update to its 2015 feasibility study. The updated feasibility study (“UFS”) included revisions to the mine schedule to bring forward high-grade
areas at Umwelt underground. The revised mine plan increased total gold production by 1.0 million ounces, with annual average production of 287 koz in years 1 through 5 and 223 koz per year over
the 15-year mine life. The UFS indicates the Project generates a post-tax internal rate of return of 27.7% and net present value(5%), of C$1.1B with a rapid pay back of 2.3 years using a gold price
of US$1,600/oz and an exchange rate of 1.31 $C/$US.