Sabina Gold & Silver Announces Financial Results for the Year Ended 2017
March 13 2018 - 8:00AM
Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”)
(TSX:SBB) reports the financial results for the quarter and year
ended December 31, 2017.
“2017 was an exceptional year for Sabina,”
said Bruce McLeod, the Company’s President& CEO.
“The receipt of a positive NIRB recommendation and concurring
Minister’s decision result in the receipt of our Project
Certificate for Back River in December last year. This marks
the end of the environmental assessment phase and five years of
rigorous review. We have now submitted or are in the process
of submitting our other license and work authorization applications
to move the Project forward. Additionally, we had further success
in 2017 with our drilling programs and have continued to
demonstrate the potential for adding mine life and enhancing
project economics at the Goose Property. We also announced a
new significant shareholder in December as Zhaojin International
Mining invested approximately $66.1 million into the Company.
All of these events were major catalysts for the Company in 2017,
and set us up to continue to advance the project in 2018.
Camps are open, and we have commenced pre-construction
infrastructure works and exploration programs at site. We
look forward to reporting on our accomplishments as we move through
2018.”
2017 Highlights:
- The Company had cash and cash
equivalents and short-term investments of $32.4 million at December
31, 2017;
- On December 5, 2017, the Minister
of Indigenous and Northern Affairs Canada accepted the
Nunavut Impact Review Board’s (“NIRB”) recommendation (received in
July 2017) that the Back River Project (“Back River” or the
“Project”) should proceed to the regulatory and licensing
phases. The Company subsequently received the final Project
Certificate from the NIRB on December 20, 2017 enabling the Company
to move the Project forward to the licensing phase;
- On December 11, 2017, the Nunavut
Water Board commenced public review of the Type A and Type B
water license applications of the Company related to the initial
mine development, mine construction and operation of the
Project;
- On December 19, 2017, the Company
announced an investment by Zhaojin International Mining Co., Ltd
(“Zhaojin”) to purchase 24,930,000 common shares of the Company at
a price of $2.65 per share for a total investment of $66.1million.
The financing was completed on January 19, 2018, whereby the
Company received net proceeds of $62.1 million after financing
costs of $4.0 million;
- On October 18, 2017, the Company
jointly announced with the Kitikmeot Inuit Association
completion of a binding term sheet for land tenure and Inuit
benefits for the Back River Project. The term sheet sets out
the principle terms that are to be included in a definitive
framework agreement, which includes several agreements containing
obligations as defined by the Nunavut Agreement on land claims,
including an Inuit impact and benefits agreement. The
framework agreement and other underlying agreements are expected to
be completed in the first half of 2018;
- During the year, the Company also
completed two flow-through equity financings for total gross
proceeds of $12.2 million. The total gross proceeds from
these financings must be used to incur Canadian exploration
expenditures as defined by the Income Tax Aca (Canada) by December
31, 2018;
- During the year the Company
completed a phased exploration program on the Back River
Project. Initially planned as a 7,000-meter spring drill
program, positive results from the program resulted in an expanded
second program for a total of 12,603 meters in 22 holes in
2017. The results of this drilling successfully demonstrated
the potential for growth of the existing deposits and the discovery
of a new significant mineralization target, the deep iron formation
or “DIF” horizon;
- For the year ended December 31,
2017, the Company reported a net loss of $3.8 million or $0.02 per
share.
Financial Results
For the year ended December 31, 2017, the
Company reported a net loss of $3.8 million, favourable by $2.3
million compared to the same period of 2016. The decrease in
the loss year over year was primarily the result of a write down of
the Wishbone properties in 2016 ($7.1 million), offset by higher
operating expenses ($2.2 million) and higher deferred tax expense
($3.1 million) in 2017 compared to 2016.
For the full December 31, 2017 year end
financial statements and Management’s Discussion and Analysis,
please see the Company website at www.sabinagoldsilver.com or on
SEDAR.
SABINA GOLD & SILVER
CORP
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed,
(after closing the financing on January 19, 2018 had
approximately C$94.5 million in cash and equivalents), and is
an emerging precious metals company with district scale, advanced,
high grade gold assets in one of the world’s newest, politically
stable mining jurisdictions: Nunavut, Canada.
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 (see “Technical Report for the Initial Project
Feasibility Study on the Back River Gold Property, Nunavut, Canada”
dated October 28, 2015) (the “Study”). At a US$1,150 gold
price and a 0.80 (US$:C$) exchange rate, the Study delivers a
potential after tax internal rate of return of approximately 24.2%
with an initial CAPEX of $415 million.
The Project received its final Project
Certificate on December 19, 2017. The Project is now in the
final regulatory and licensing phase.
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 nhoeller@sabinagoldsilver.com
Forward Looking StatementsThis
news release contains “forward-looking information” within the
meaning of applicable securities laws (the “forward-looking
statements”), including our belief as to the extent, results and
timing of exploration programs and various studies including the
FS, and exploration results, reserves estimates, potential
production from and viability of the Company’s properties,
production and operating costs and permitting submission, 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, 2017 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.
Bruce McLeod, President & CEO1800-555 Burrard
Street, Two Bentall CentreVancouver, BC V7X 1M9
Tel 604 998-4175
Fax 604 998-1051
http://www.sabinagoldsilver.com
Sabina Gold and Silver (TSX:SBB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sabina Gold and Silver (TSX:SBB)
Historical Stock Chart
From Apr 2023 to Apr 2024