Sabina Gold & Silver Announces Q2 2012 Financial Results
$152.9 million at June 30, 2012 in cash and short-term investments
VANCOUVER - Sabina Gold & Silver Corp. (the “Company”) (SBB - TSX) reported today the financial results for the interim period ended June 30, 2012.
Highlights of the quarter include:
- On May 29th, the Company announced a positive PEA on the Back River Gold Project. According to the PEA, the base case scenario for the project generates a post-tax NPV of $650 million and an IRR of 25% at a $1250 gold price.
- The Company completed a bought deal flow-through financing comprised of 11,896,750 flow-through common shares at $2.90 for gross proceeds of $34.5 million. An additional 206,759 flow-through common shares at $2.90 were sold on a non-brokered basis for additional proceeds of approximately $0.6 million.
- Extensive construction and upgrading continued at both the Goose and the George camps.
- On April 26 and June 4, the Company announced significant high grade assays from the Llama deposit at the Back River Gold Project. Results included Hole 12GSE182 which returned 21.76 g/t Au over 11.70m including 51.52 g/t Ay over 4.50m; hole 12GSE180 which returned 8.40 g/t Au over 10.90m and hole 12GSE168 which returned 6.73 g/t Au over 9.25m
- The Company ended the quarter with cash and short-term investments of $152.9 million.
For the quarter ended June 30, 2012, the Company reported a net loss of $343 thousand compared to a loss of $3.0 million in 2011. The loss in 2012 is lower than the same period on 2011 primarily as a result of reduced operating and deferred income tax expenses partially offset by reduced amortization of flow-through premium.
The Company had cash and cash equivalents and short-term investments of $152.9 million at June 30, 2012 compared to cash and cash equivalents of $147.4 million at March 31, 2012. It is anticipated that the Company will end the year with approximately $115 million in cash at December 31, 2012.
For the full Q2, 2012 interim financial statements and Management’s Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com.
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is an emerging precious metals developer with district scale, world class assets in one of the world’s newest, most politically stable mining jurisdictions: Nunavut, Canada.
Sabina’s primary assets, all located in Nunavut, consist of: the Back River Gold Project, currently in the pre-feasibility and permitting phase; the Wishbone Claims, a vastly prospective grass roots project; and the Hackett River Silver Royalty, a silver production royalty on Xstrata Zinc’s Hackett River project comprised of 22.5% of the first 190 million ounces produced and 12.5% of all the silver produced thereafter.
The PEA was prepared under the direction of SRK Consulting (Canada) Inc. by leading independent industry consultants, all Qualified Persons (QP) under National Instrument 43-101.
The NI 43-101 “Back River Gold Project Preliminary Economic Assessment (“PEA”)” can be found on www.SEDAR.com or on the Company’s website.
All technical reports have been filed on www.sedar.com
For further information please contact:
Nicole Hoeller, Vice-President, IR:
1 888 648-4218
Forward Looking Statements
Statements relating to future operations at the Hackett River Project, the Back River Project and the Wishbone Greenstone belt and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” ‘projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties, including those described in Sabina’s Annual Report for the year ended December 31, 2011.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management’s beliefs, estimates or opinions, or other factors, change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp
Rob Pease, President & CEO
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Tel 604 998-4175 Fax 604 998-1051
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