Sabina Gold & Silver is raising $110 million to build the Goose Gold Mine in Nunavut
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(Kitco News) – Sabina Gold & Silver (TSX: SBB) announced yesterday that it has reached an agreement with a syndicate led by BMO Capital Markets to raise approximately C$110 million.
According to the Company’s statement, pursuant to the agreement, the underwriters have agreed to purchase 71,000,000 common shares at a price of $1.55 per common share for gross proceeds of approximately $110 million.
The Company announced that the net proceeds from the sale of the common shares will be used for construction of the Goose Gold Mine in Nunavut, working capital and general corporate purposes.
Sabina Gold & Silver stated that it is an emerging gold mining company that owns 100% of the district-wide, advanced, high-grade Back River gold district in Nunavut, Canada.
Sabina said it recently submitted an updated feasibility study on its first mine in the district, the Goose mine, presenting a project that will produce ~223,000 ounces of gold per year for ~15 years with an after-tax payback of 2.3 years becomes IRR of ~28% and NPV5% of C$1.1B.
Importantly, the Company noted that the project received its final major permit on June 25, 2020 and all major permits and permits for construction and operations are now in place.
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