Sabina Gold & Silver Announces Financial Results For The Quarter Ended June 30, 2017
August 10, 2017
VANCOUVER –Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX) reports the financial results for the quarter ended June 30, 2017.
“Much was accomplished during the second quarter as we continued to advance the Back River Project through basic engineering, optimization studies and our environmental assessment efforts. We are pleased that our final public hearings in Cambridge Bay in late May resulted in a positive recommendation for the Project from the Nunavut Impact Review Board on July 18 th. This is a milestone de-risking event for the Company and the Project. We are now awaiting a decision from the Minister of Indigenous and Northern Affairs Canada,” said Bruce McLeod, President & CEO. “In addition, the exploration success we had at the Goose Project this spring has provided opportunities to extend the mine life of the project. In particular, grades at the Vault Zone are more than double the average grade of the Back River resource and could offer opportunities to positively impact Project economics. We have commenced our summer drilling campaign with a focus on the Vault Zone and look forward to the results.”
Q2, 2017 Highlights:
- The Company had cash and cash equivalents and short-term investments of $36.6 million at June 30, 2017.
- Subsequent to the quarter, on July 18, 2017, the Nunavut Impact Review Board recommended to the Minister of Indigenous and Northern Affairs Canada that development of the Company’s Back River gold project should proceed to the licensing phase.
- During the quarter, the Company completed its first phase exploration drilling program at the Goose property. Positive results from this program included the expansion of mineralization on both the Umwelt and Llama deposits. Drill hole 17GSE511B at the Umwelt “Vault” zone returned 16.86 g/t Au over 13.5 m from 734.00 m to 747.5 m, including 27.11 g/t Au over 7.95 m from 736.75 to 744.70 m. Drill hole 17GSE513 at Llama returned 6.52 g/t Au over 8.3m.
- Subsequent to the quarter, following the positive results from the first phase of the exploration program, the Company announced an expanded summer drilling program with a focus on the Unwelt Vault Zone.
- On June 29, 2017, the Company engaged Cutfield Freeman & Co as its financial advisor for project financing of the construction of the Back River Project.
- Subsequent to the quarter, on July 28, 2017, the Company announced a non-brokered private placement flow-through financing of 2,105,265 flow-through common shares at a price of $2.85 per share for total gross proceeds of approximately $6.0 million. The financing is scheduled to close in two tranches, one on August 15, 2017 and the second on or about September 10, 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.
- For the quarter ended Jun 30, 2017, the Company reported net loss of $0.6 million or $0.00 per share.
For the three months ended June 30, 2017, the Company reported a net loss of $0.6 million or $0.00 per share, in comparison to a net income of $0.2 million or $0.00 per share in the corresponding period of 2016. The difference quarter over quarter was primarily the result of lower sales of Pure Gold Mining Inc. (“Pure Gold”) shares in 2017 compared to 2016.
For the six months ended June 30, 2017, the Company reported a net loss of $2.0 million, unfavourable by $1.6 million compared to the same period of 2016. The increase in loss period over period was mainly due to a timing difference in the granting of stock options and a higher net gain realized on the sale of Pure Gold shares in the six-month period ended June 30, 2016.
For the full June 30, 2017 interim financial statements and Management’s Discussion and Analysis, please see the Company website atwww.sabinagoldsilver.com or on SEDAR.
SABINA GOLD & SILVER CORP
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.
In September, 2015, Sabina 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. At a US$1,150 gold price and a 0.80 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.
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:
Nicole Hoeller, Vice-President, Communications:
1 888 648-4218