“The second quarter was extremely busy for the Company,” said Bruce McLeod, the Company’s President & CEO. “We continued with our procurement efforts, our civil works and advancing the underground exploration ramp. In addition, we completed a very successful exploration program with results continuing to demonstrate opportunities for delivery of higher-grade material earlier in the mine life. We have also focused on building our team with a major recruiting and hiring campaign as we prepare for full construction next year. The quarter culminated at PDAC when we received the sustainability award for Leadership in Environmental Protection and/or Good Community Relations. We share this award with the many constituents of the Kitikmeot region and the
Q2 Highlights
- In relation to the equity component of the construction financing package that was announced on
February 8, 2022 , the third and final tranche of theOrion Mine Finance and Wheaton Precious Metals Corp. financings closed onMay 31, 2022 , resulting in the issuance of 9,617,569 common shares of the Company to Orion and 2,564,685 common shares of the Company to Wheaton for gross proceeds of$15.8 million . Concurrently, the second and final tranche of Zhaojin’s financing closed, resulting in the issuance of 1,338,565 common shares of the Company resulting in gross proceeds of$1.7 million . - On
June 13, 2022 , in relation to a bought deal financing that closed inMarch 2022 and to maintain their 9.9% pro-rata holding, Zhaojin completed a private placement financing with the Company comprised of 7,797,831 common shares at$1.55 per common share for gross proceeds of$12.1 million . - On
May 6, 2022 , Sabina repaid theUS$20 million Sprott bridge loan with a payment ofUS$20.8 million , which was inclusive of the minimum nine-months interest that was payable on early repayment. - During the quarter, the Company:
- Advanced various initiatives related to project execution, including both a CAT train resupply program and an airlift campaign to the Goose project site, ongoing procurement related to the summer sealift season and associated logistics of getting materials and equipment to the port facility, sub-base road improvement activities in preparation for the winter ice road for 2023, and continued efforts to move engineering work packages forward in order to help facilitate the delivery of long lead items next year.
- Completed a spring exploration drill program at Goose of 1,886 meters over 10 holes, including one geomechanical hole at the base of the Umwelt open pit for rock property data collection.
- Advanced various initiatives related to project execution, including both a CAT train resupply program and an airlift campaign to the Goose project site, ongoing procurement related to the summer sealift season and associated logistics of getting materials and equipment to the port facility, sub-base road improvement activities in preparation for the winter ice road for 2023, and continued efforts to move engineering work packages forward in order to help facilitate the delivery of long lead items next year.
- For the three months ended
June 30, 2022 , the Company reported net income of$49.0 million or$0.09 per share compared to a net loss of$40.7 million or$0.10 per share during the first quarter of 20221. The second quarter 2022 reported net income is driven primarily by unrealized gains of$51.2 million (after-tax) compared to first quarter 2022 unrealized losses of$35.3 million (after-tax) on the change in fair value of the construction financing obligations. For the six months endedJune 30, 2022 , the Company reported net income of$8.3 million or$0.02 per share.
For the full
On
After a receipt is issued for the Final Base Shelf Prospectus Sabina will be able to conduct offerings in the maximum aggregate amount of
A copy of the Preliminary Base Shelf Prospectus is available on SEDAR (www.sedar.com) and also may be obtained by contacting the Vice-President, Communications & Corporate Secretary of the Company at Suite 1800 – Two Bentall Centre,
1 The Company’s previously reported results for the three months ended
Sabina filed an Updated Feasibility Study (the “UFS”) on its first mine on the district, the
The Project has received all major permits and authorizations for construction and operations.
The Company has arranged a comprehensive project financing package comprised of:
- A
US$425 million senior secured debt facility, gold prepay and stream package withOrion Mine Finance and Wheaton Precious Metals Corp.; and US$221 million in equity including Zhaojin’s participation.
The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the
The Company continues to advance exploration and project optimization, including advancing the planned plant expansion to 4,000 tonnes per day from year two to initial startup.
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. All technical reports have been filed on www.sedar.com.
For further information please contact: | ||
nhoeller@sabinagoldsilver.com | ||
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including, but not limited to, statements related to the expected use of proceeds of the construction financing package and the projections and assumptions of the results of the UFS. 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 uncertainty of production, development plans and costs estimates for the
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http://www.sabinagoldsilver.com
Source:
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