Sabina Gold & Silver Corp. - CEO, Bruce McLeod
CEO, Bruce McLeod
Source: Energy and Gold Ltd.
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  • Sabina Gold & Silver (TSX:SBB) has completed its previously announced bought deal offering for gross proceeds of approximately C$55 million
  • The company issued a variety of securities, including common shares, flow-through common shares and charity flow-through common shares
  • BMO Capital Markets and RBC Capital Markets led a syndicate of underwriters, which included Canaccord Genuity and Echelon Wealth Partners, among others
  • The proceeds raised under the offering will be used to fund exploration activities at the company’s Back River Gold Project in Nunavut
  • Sabina Gold & Silver (SBB) is currently down 4.26 per cent and is trading at $1.80 per share

Sabina Gold & Silver (TSX:SBB) has completed its previously announced bought deal offering for gross proceeds of approximately C$55 million.

The fully-subscribed offering included a variety of different securities. 12.5 million common shares were issued at a price of $2.00 per share, 2.1 million flow-through common shares were issued at $2.40.

The company also issued 5.22 million charity flow-through common shares at a price of $2.68 each, along with 1.63 million super charity flow-through common shares at a price of $2.90.

Under the terms of the offering, BMO Capital Markets and RBC Capital Markets led a syndicate of underwriters, which included Canaccord Genuity, Echelon Wealth Partners, Industrial Alliance Securities, National Bank Financial, Paradigm Capital, Sprott Capital Partners and TD Securities.

In addition, Zhaojin International Mining, a current shareholder in Sabina Gold & Silver, elected to retain their 9.9 per cent interest.

This resulted in the issuance of a further 2.88 million common shares at a price of $2.00 each for gross proceeds of $5.8 million. This tranche of the financing is expected to close by June 10 this year.

With the offering now complete, the company anticipates having roughly $80 million on its balance sheet, made up of cash, cash equivalents and short-term investments.

Sabina Gold & Silver said it expects to use the proceeds raised under the offering to fund the development of its Back River Gold Project in Nunavut, Canada. This is anticipated to include exploration programs, earth works to establish an exploration decline at Umwelt, and the extension of an airstrip at Goose.

The company also plans to acquire accomodation complexes for future mine operations.

Wholly owned by Sabina Gold & Silver, the Back River Gold Project sits approximately 520 kilometres northeast of Yellowknife in the North West Territories and 50 kilometres southeast of Glencore’s Hackett River Silver-Zinc Project.

Sabina Gold & Silver (SBB) is down 4.26 per cent and is trading at $1.80 per share at 3:37pm EDT.

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