Sabina Gold & Silver announces significant progress on
VANCOUVER, British Columbia, December 7, 2021 (GLOBE NEWSWIRE) – Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX / SGSVF – OTCQX) reports on the progress of project financing for the Goose Mine, the first mine in the Back River Gold District, 100% owned , Nunavut, Canada.
Sabina continued to advance project finance initiatives for the Goose Mine. An indicative project financing terms sheet was signed at the start of the year and the commercial due diligence is now complete. The proposed project finance facility has also received investment committee approval, subject to the completion of legal due diligence and approval of final documentation. At the same time, the Company also negotiated a rolling terms sheet for the Goose mine.
The Company is currently advancing final documentation relating to the project finance facility and the ongoing transaction. The definitive final documentation is expected to be completed in January 2022, which would allow construction to begin in the new year.
“After a lot of hard work, we are approaching the completion of an important milestone for the Company as we move towards gold producer status,” said Bruce McLeod, President and CEO. “Considerable due diligence was performed by all parties, including an independent engineer, and the debt partner received investment committee approval for the facility. While there are still things to be finalized, we look forward to finalizing the documentation process and completing both agreements. The objective of our financial package has been to minimize the dilution of equity. We look forward to sharing the details of the financial package for the project once finalized.
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is well-funded and is an emerging precious metals company with advanced, high-grade district-scale gold assets in Nunavut, Canada.
Sabina recently submitted an updated feasibility study (the “UFS”) On its 100% owned Back River Gold project which features a project that will produce approximately 223,000 ounces of gold per year (first five year average of 287,000 ounces per year with peak production of 312,000 ounces in the third year ) for around 15 years with a quick payback of 2.3 years, with an after-tax IRR of around 28% and a NPV5% of CA $ 1.1 billion. See “National Instrument (NI) 43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.
The project received its final major authorization on June 25, 2020 and is now receiving all major permits and authorizations for construction and operation.
In addition to Back River, Sabina also owns a large silver royalty on Glencore’s Hackett River project. The silver royalty on Hackett River silver production comprises 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
All press releases and further information can be found on the Company’s website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com. All technical reports were filed on www.sedar.com.
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This press release contains “forward-looking information” within the meaning of applicable securities laws (the “”forward-looking statements“), including, but not limited to, statements relating to the expected performance of the final documents, the start date of construction and the projections and assumptions of UFS’s results. These forward-looking statements are made to the date of this press release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the circumstances, results or future results anticipated or implied by such forward-looking statements will occur or that the plans, intentions or expectations upon which the forward-looking statements are based will occur. Although we have based these forward-looking statements on our expectations regarding future events on the date on which such statements were prepared, statements do not constitute a guarantee that these future events will occur and are subject to risks, uncertainties, assumptions and other factors that could cause s events or results that differ materially from those expressed or implied by these forward-looking statements. These factors and assumptions include, among others, the uncertainty of production, development plans and cost estimates for the Back River gold project; differences between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs; interpretation of the results of drilling, metallurgical tests and other exploration results; the Company’s ability to retain its key management employees and qualified and experienced personnel; exploration, development and mining risks and the inherently hazardous nature of the mining industry, and the risk of inadequate insurance or inability to obtain insurance to cover these and other risks and uncertainties ; risks associated with mining properties and titles, including defective titles to claims or mining properties; the effects of general economic conditions, commodity prices, changes in exchange rates and actions taken by government and regulatory authorities; and errors in judgment in the preparation of forward-looking statements. In addition, there are known and unknown risk factors that could cause our actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking statements. Known risk factors include risks associated with exploration and development of the project; 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 regulations; obtain and renew the necessary licenses and permits; environmental liability and insurance; the use of key personnel; the potential for conflicts of interest between some of our officers or directors; the absence of dividends; currency fluctuations; labor disputes; competetion; dilution; the volatility of the price and volume of our common shares; 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 year ended December 31, 2020 filed with the Canadian Securities Corporation. administrators and available at www.sedar.com. Although we have attempted to identify material 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 may cause the actions to differ materially from those described in forward-looking statements. , events or results are not those anticipated, estimated or foreseen. . There can be no assurance that forward-looking statements will prove to be correct, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or change any forward-looking statements, except as required by applicable securities laws.
Bruce McLeod, President and CEO
1800-555 Burrard Street, Two Bentall Center
Vancouver, BC V7X 1M9
Phone. 604 998-4175 Fax. 604 998-1051