Sabina Gold & Silver & Kitikmeot Inuit Association Announce Two New Agreements
April 28 2014 - 1:00PM
Marketwired
Sabina Gold & Silver & Kitikmeot Inuit Association Announce
Two New Agreements
Continuing to work towards responsible development of the Back
River Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 28, 2014) -
Sabina Gold & Silver Corp (TSX:SBB) ("Sabina" or the "Company")
and the Kitikmeot Inuit Association ("KIA") are pleased to announce
they have finalized the details of two important agreements which
will continue to foster and build on a relationship of cooperation
between the two organizations as we to continue to work together
towards the responsible development of the Back River Gold Project
("Back River" or the "Project"). Earlier this year, agreements for
the Development Trust and Capacity Funding were completed.
The KIA is the surface title holder of 104,278 Km2 of Inuit
owned lands in the Kitikmeot Region, including the majority of the
lands which comprise the Back River Gold Project. The KIA
represents the interests of Inuit beneficiaries in the region under
the Nunavut Land Claims Act ("NLCA") and is a participant in the
environmental assessment process of Back River.
Charlie Evalik, President of the KIA acknowledged Sabina for its
support of KIA's ambitions to create opportunities for the
beneficiaries of the region. "The KIA is committed to principles of
economic sustainability and environmental stewardship in respect of
Back River. We view these agreements as important steps to
establishing a cooperative long term relationship which is aligned
with these principles. Sabina is a welcome participant in this
process."
Development Trust
Fund
In recognition of Inuit rights under the NLCA, Sabina and the
KIA have finalized a Development Trust Fund Agreement ("Development
Agreement") whereby Sabina will establish and contribute to the
Development Trust (the "Trust") on behalf of the KIA.
The Trust will be established with an objective of contributing
funding towards short and long term KIA development projects and
initiatives including training and education as well as
infrastructure projects that will serve to support sustainable
economic development in the region.
"The development of the Trust is indicative of our investment in
the economic sustainability and environmental stewardship of the
Kitikmeot," said Rob Pease, President & CEO of Sabina "We view
this Trust as a vehicle to cultivate long term relationships with
the beneficiaries of the region, train our future employees and
potentially support infrastructure needs and growth in the future.
We are proud to be one of the first companies in Nunavut to create
such a Trust."
The definitive form of the Development Agreement incorporates
the following terms:
- The Trust would receive 3% of Sabina's net proceeds from the
silver royalty retained by Sabina on the Hackett River and Wishbone
properties sold to Glencore Canada Plc ("Glencore"), formerly
Xstrata Zinc Canada Ltd.
- To kick off the initiative, prior to creation of the Trust,
Sabina has paid approximately $1.4 million to an existing KIA fund
which provides for development and community initiatives in the
Kitikmeot Region.
- Funds contributed to the Trust would be allocated by the
Trustees to initiatives that provide benefits to the Kitikmeot
region. A portion of the Trust funds would be retained for
allocation after mine or project closure;
- Payments can be made to the Trust in shares at Sabina's
election (subject to regulatory approval);
Capacity Funding
Agreement
As previously reported, environmental assessment and permitting
processes for Back River are well underway. The Company is
committed to working efficiently with the KIA through the process
and recognizes that the KIA has an immediate need to increase its
personnel capacity to respond to the technical review of the
Project. To this end, Sabina and the KIA have finalized a Capacity
Funding Agreement (the "Capacity Agreement").
Under the terms of the Capacity Agreement Sabina will fund the
KIA based on an agreed work plan and budget for the environmental
assessment and permitting processes. Funding will occur over an
estimated period of three years ending in 2016, which is the
anticipated completion of the permitting process. This funding will
enable the KIA to establish stable, long term funding to enable the
KIA to employ staff, retain certain technical specialists and to
conduct such administrative and management functions as are
required with the process.
KITIKMEOT INUIT ASSOCIATION
The Kitikmeot Inuit Association is a birthright development
corporation representing and benefiting the Kitikmeot Inuit of
Nunavut. Our mandate is "To represent the interests of Kitikmeot
Inuit by protecting and promoting our social, cultural, political,
environmental and economic well-being". With a population of 5,361
and significant potential for development and economic growth, our
future holds great promise; the Kitikmeot Inuit Association will
have an important role to play in securing this future.
Further information can be found on the KIA's website at
http://www.kitia.ca.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging gold developer
with district scale, world class assets in one of the world's
newest, most politically stable mining jurisdictions: Nunavut,
Canada.
Sabina's primary assets, all located in Nunavut, consist of: the
Back River Gold Project, currently in the pre-feasibility and
permitting phase; the Wishbone Claims, a vastly prospective grass
roots project; and the Hackett River Silver Royalty, a silver
production royalty on Xstrata Zinc's Hackett River project
comprising 22.5% of the first 190 million ounces produced and 12.5%
of all the silver produced thereafter. The Company ended 2013 with
approximately $58 million in cash and expect to end 2014 with
approximately $36 million.
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.
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, of the
Environmental Impact Study timing and receipt of necessary permits
and project approvals for future operations and access to project
funding. 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, 2013 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.
Sabina Gold & Silver Corp.Nicole HoellerVP, Communications1
888 648-4218nhoeller@sabinagoldsilver.comSabina Gold & Silver
Corp.Rob PeasePresident & CEO604 998-4175604
998-1051www.sabinagoldsilver.comKIAPaul EmingakExecutive Director1
867-983-2458pemingak@qiniq.comwww.kitia.ca
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