-Drilling for high impact targets at Goose
Property planned-
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
SBB – TSX
VANCOUVER, Feb. 14, 2017 /CNW/ - Sabina Gold & Silver Corp (the "Company")
(SBB – TSX) has announced today that it has entered into an
agreement with a syndicate of underwriters led by, Canaccord
Genuity and including, Paradigm Capital Inc., Cormark Securities
Inc., Haywood Securities Inc. and Echelon Wealth Partners Inc. (the
"Underwriters") under which the Underwriters have agreed to place,
on a bought deal basis, 3,150,000 flow-through common shares (the
"Flow-Through Common Shares") at a price of $1.75 to raise gross proceeds of approximately
$5,512,500 (the "Offering"). In
addition, the Company will grant the Underwriters an over-allotment
option, at the offering price, to purchase up to an additional
290,000 Flow-Through Common Shares (the "Over-Allotment Shares")
exercisable at least 48 hours prior to the closing date. The
gross proceeds from the sale of the Flow-Through Common Shares will
be used to explore and advance the Company's Back River Gold
Project ("Back River" or the "Project").
"While the Company has a well provisioned treasury that enables
us to advance the Project through permitting and engineering
studies, this modest flow through financing enables us to drill
test some high value targets with the potential to demonstrate
additional mine life at the proposed Goose Project footprint as
outlined our news release dated February 7,
2017." said Bruce McLeod,
President & CEO. "While Back River has reached the
critical mass of ounces to push the project towards production, we
believe that there remains considerable upside both in new
discovery and resource extension that could ultimately enhance
project economics."
This Financing is scheduled to close on or about February 28, 2017 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the Toronto Stock
Exchange. The total gross proceeds from the Financing must be
used to incur Canadian exploration expenditures as defined by the
Income Tax Act (Canada) by
December 31, 2018.
A 5% commission will be paid to the Underwriters in relation to
the Financing.
2017 Exploration Targets
Key objectives for the 2017 program are focused on drill testing
for new discoveries and demonstrating high value potential mine
life additions at the Goose property through extensional and
step-out drilling at what could be high impact targets at Umwelt,
Llama, Echo, GNS and Kogoyok. This drilling, totaling
approximately 6000 meters, is planned to be completed in two
separate five-week campaigns during late spring and summer of this
year.
All of the targets have been assessed for their optionality to
enhance project economics by adding or demonstrating additional
mine life in the footprint of the proposed Goose Project.
Umwelt –Vault
The Umwelt deposit hosts the only planned underground mine at
the Goose Project. Deposit continuity at Umwelt has been
established to over 850 metres vertical depth. The Vault
target sits partially along, but outside of, the eastern margin of
the planned Umwelt development area at approximately 600 meters
depth and is marked along its eastern edge by exceptional
high-grade intercepts from drilling completed in 2011 and
2012.
The Vault has been targeted as an opportunity to extend the
Umwelt deposit underground. Success in this program has the
potential to extend the limits of the mineralized zone in the
target area and demonstrate opportunities for extended mine life at
the deposit. Further drilling on the Vault would be driven by
success.
Llama Extension
Both the Llama and the Umwelt deposits are hosted in
consistently south-plunging iron formation stratigraphy. The
continuity of the Llama underground resource (which is not included
in the current development plan) has been established to
approximately 450 metres vertical depth, but remains open with
significant upside extension potential. The Llama Extension
target drilling will consist of a significant down plunge step-out
test of the projected Llama stratigraphy at approximately 700
metres vertical depth.
Echo
The Echo deposit located approximately 2.5 km west of the Goose
deposit remains a significant resource growth option as well as an
additional discovery opportunity for the Goose property. The
area immediately surrounding the deposit resources (which are not
included in the current development plan) have both extensional and
brownfields target opportunities with increasingly favourable
projections of thickened iron formation stratigraphy proximal to
interpreted fold closures. Successful drill testing in
multiple areas down-plunge and potentially inboard of the current
deposit could support rapid resource growth and value within the
Echo resource.
GNS (formerly Goose Neck South)
The GNS target has been interpreted as a potential Echo
analogue: moderate size, relatively shallow gold mineralization,
with favourable mining geometry. Drilling has been planned at
the GNS target to assess the extent of the highest grade portion of
the zone, down-plunge from the best 2011 intercepts. Success
in this program could allow consideration of resource development
at GNS.
Kogoyok East
Kogoyok East is part of a largely undrilled iron formation trend
that extends for 2 km westward from the Echo deposit. Results
from field work and drilling completed in 2015 and 2016 demonstrate
the favourable exploration potential with the presence of folded
iron formation stratigraphy, felsic dykes, and gold
endowment. Initial drilling will target shallow, projected
zones of anomalous gold mineralization at significant step-outs
along this trend.
This news 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 state in which such offer, solicitation or
sale would be unlawful. The securities have not been
registered under the United States Securities Act of 1933, as
amended and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
Qualified Person
The Company's Qualified Person (as defined by National
Instrument 43-101) in respect of the Back River Project is
James Maxwell, P.Geo, Exploration
Manager – Back River, for the Company, and he has approved the
scientific and technical disclosure in this news release.
Sabina Gold & Silver
Corp
Sabina Gold & Silver Corp. is
a well-financed, emerging precious metals company with district
scale, world class undeveloped assets in one of the world's newest,
politically stable mining jurisdictions: Nunavut, Canada.
Sabina recently 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). At a US$1,150 gold price and a 0.80 (US$:C$) exchange
rate, the Study delivers a potential after tax internal rate
of return of approximately 24.2% with an initial CAPEX of
$415 million.
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.
The Company had approximately C$40
million in cash and equivalents at December 31, 2016.
Forward Looking Information
This news release contains
"forward-looking information" within the meaning of applicable
securities laws (the "forward-looking statements"), including our
belief as to the extent, results and timing of and various studies
relating to exploration and project development. 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 licences 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, 2015 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. This news release has
been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod,
President & CEO
Suite 375 – Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
All news releases and further information can be found on the
Company's website at www.sabinagoldsilver.com or on SEDAR at
www.sedar.com.
SOURCE Sabina Gold & Silver
Corp