Sabina Gold & Silver Announces $55 Million Bought Deal Financing Closed
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VANCOUVER, British Columbia, June 3, 2020 – Sabina Gold & Silver Corp. (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) reports today that it has completed the previously announced bought deal offering (the “Offering”).
The Offering was fully subscribed and was comprised of a combination of 12,500,000 common shares at $2.00 per share (the “Common Shares”), 2,100,000 flow-through common shares at $2.40 per share (the “Flow-Through Common Shares”), 5,224,000 charity flow-through common shares at $2.68 per share (the “Charity Flow-Through Common Shares”), and 1,638,000 super charity flow-through common shares at $2.90 per share (the “Super Charity Flow-Through Common Shares” and together with the Common Shares, Flow-Through Common Shares and Charity Flow-Through Common Shares, the “Securities”). The Underwriters also elected to exercise their over-allotment option to purchase 2,900,000 Common Shares at $2.00 per share.
In addition to the Offering above, Zhaojin International Mining Co., Ltd. elected to maintain its 9.9% holdings resulting in the issuing of 2,882,082 common shares of the Company at $2.00 per share for gross proceeds of approximately $5.8 million. This tranche of funds is expected to close before June 10, 2020.
Including Zhaojin’s participation, the Company expects to raise a total of approximately $61 million by issuing approximately 27 million shares at an average price of $2.22 per share.
The proceeds from the sale of the Common Shares will be used to advance development of the Company’s Back River Gold Project, including exploration programs, earth works activities to support development of and commencement of development of an exploration decline at Umwelt, completion of detailed engineering, extension of the airstrip at Goose, completion of geotechnical drilling and acquisition of accommodation complex for future mine construction and operations, and for working capital and general corporate purposes.
The gross proceeds from the sale of the Flow-Through Common Shares and Super Charity Flow-Through Common Shares will be used for expenditures which qualify as “Canadian exploration expenses” (“CEE”) and “flow-through mining expenditures” both within the meaning of the Income Tax Act (Canada). The gross proceeds from the sale of the Charity Flow-Through Common Shares will also be used for expenditures which qualify as CEE. The Company will renounce such CEE with an effective date of no later than December 31, 2020.
The syndicate of underwriters was led by BMO Capital Markets and RBC Capital Markets, and included Canaccord Genuity Corp., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., Sprott Capital Partners LP., and TD Securities Inc.
Tamesis Partners LLP acted as part of a special selling group related the Offering.
The Securities were offered pursuant to the Company’s base shelf prospectus dated May 15, 2020 and a prospectus supplement dated May 21, 2020 filed with securities regulators in each of the provinces and territories of Canada, and the Common Shares may also be offered by way of private placement in the United States.
The Securities 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 Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015).
The Project received its final Project Certificate on December 19, 2017. The Project received its Type A Water License on November 14, 2018 and is now in receipt of all major authorizations for construction and operations.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
Bruce McLeod, President & CEO
Suite 1800 – Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including information pertaining to the Company’s filing of the Preliminary Base Shelf Prospectus, regulatory approval of the Shelf Prospectus and any potential future offering(s) of securities pursuant to the Shelf Prospectus (and the use of proceeds therefor). These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2019 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
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