Sabina Gold & Silver Completes Sale of Newman-Madsen, Ontario
Assets
Laurentian Goldfields Consolidates Newman Madsen Region in Red
Lake District
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 25, 2014) -
Sabina Gold & Silver Corp. (the "Company" or "Sabina")
(TSX:SBB) reported today that it has completed the sale of the
Company's Newman-Madsen property to Laurentian Goldfields Ltd.
("Laurentian").
The Newman Madsen property is an early stage exploration project
comprised of 38 patented mining claims located in the Red Lake
Mining Division of Ontario, 3.5 km southwest of the town of Red
Lake and 4.5 km northeast the Madsen Mine.
"Newman-Madsen was a non-core asset to the Company, however, the
property was viewed as a good opportunity for future discoveries in
the prolific Red Lake camp," said Rob Pease, President and CEO of
Sabina "The vending in of our Red Lake property in this newly
consolidated Laurentian land package offers many high quality
opportunities for discoveries and potential near term production.
We look forward to hearing about Laurentian's work plans for the
properties over the next several months."
In consideration for the asset, Sabina has received 6.5 million
shares in Laurentian, representing approximately 6.3% of the total
issued and outstanding shares of Laurentian. Sabina also received a
participation right to maintain its holdings in Laurentian in
future financings (until the earlier of 24 months or Sabina ceases
to hold at least 3.5% of the shares of Laurentian).
The shares are subject to a four month hold. The transaction has
received all required regulatory, exchange and third party
approvals and consents.
Laurentian Goldfields
Laurentian is a junior resource company that has recently
consolidated a large strategic land position (5,000 hectares) in
the historically high grade and high margin Madsen trend in Red
Lake, Ontario.
The consolidation of the Newman-Madsen Property and the Madsen
Gold Project, that was also recently acquired by Laurentian, into
one contiguous land package expands the Laurentian's access to
prospective horizons along the Madsen Mine Trend by more than two
kilometres, and provides exposure to prospective structural
horizons associated with the Buffalo and Laverty deposits.
The Madsen Mine Trend lies along the Balmer and Confederation
unconformity, and is the key structural break that hosts the past
producing Madsen and Starratt-Olsen gold deposits. Mineralization
has been previously identified at Newman-Madsen along the
structural break, with wide spaced drilling in 2010.
Laurentian is run by a proven management team (Rob Pease has
been appointed to its Board of Directors) with technical and
practical expertise in Red Lake and has the singular focus to
explore the prospective trend. To facilitate this exploration,
Laurentian recently completed a financing and will have cash and
working capital of approximately $11.5 million; all to be spent on
progressing this highly prospective trend.
Qualified Person
Mr. Angus Campbell, P. Geo. and Vice-President, Exploration for
Sabina Gold & Silver Corp. is a Qualified Person under the
terms of NI 43-101 and has reviewed the technical content of this
press release for the Back River Project and has approved its
dissemination.
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 Glencore's 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.
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.
Forward Looking Statements
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, results and
timing of exploration programs and various studies and exploration
results, the potential tonnage, grades and content of deposits,
timing, establishment and extent of resources and reserves
estimates, potential production from and viability of the mineral
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, 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.
Rob Pease,
President & CEO 930 West 1st Street, Suite 202 North Vancouver,
BC V7P 3N4 Tel 604 998-4175 Fax 604 998-1051
www.sabinagoldsilver.com
Sabina Gold & Silver Corp.Nicole HoellerVice-President,
Communications1 888
648-4218nhoeller@sabinagoldsilver.comwww.sabinagoldsilver.com
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