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Jun 30, 2009 18:38 ET
Sabina Completes $18 Million Private Placement
Exploration Programs for 2009 at Back River being defined and expanded at Hackett River
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2009) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sabina Silver Corporation (TSX VENTURE:SBB) (the "Company") today announced completion of the previously announced private placement financing. The private placement was comprised of 5,000,000 flow-through common shares at $1.20 per share and 12,000,000 common shares at $1.00 to raise gross proceeds of $18,000,000. The private placement was carried out on a bought deal basis by a syndicate of underwriters co-led by Dundee Securities Corporation and BMO Capital Markets, and including Paradigm Capital Inc., Haywood Securities Inc. and Research Capital Corporation.
"Sabina's Board and management are committed to maintaining a strong treasury to allow the Company to carry out its initiatives," said Tony Walsh, President & CEO. "Not only does this financing replenish our treasury after the costs of the Back River acquisition, but it enables us to get straight to work on our new projects as well as push forward with more work at Hackett River. The Company is also actively looking to broaden our portfolio of precious metals projects, preferably in North America, but outside of Nunavut."
In consideration for their services, the underwriters received a 6% commission on the proceeds. All the Shares issued pursuant to the private placement are subject to a four month hold period expiring October 30, 2009. The gross proceeds of approximately $6.3 million from the flow through common shares must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2010.
In addition to the brokered private placement, the Company has also arranged to sell on a non-brokered basis, 236,500 flow through shares at $1.20 per share and 25,000 common shares at $1.00 per share for gross proceeds of $308,000. The non-brokered private placement is subject to TSXV approval and is anticipated to close by the end of the week.
Back River Gold Exploration
Work at Back River will focus on the Goose Lake deposit which currently hosts 603,000 indicated ounces of gold at 11.9 g/t and 295,000 inferred ounces at 9.2 g/t. The current resource lies within a thick folded iron formation with a shallow plunging fold hinge. This makes Goose Lake deposit a favourable target for potential open pit development.
The Goose Lake camp was opened earlier this spring and a resupply program of fuel and drilling supplies was completed to support a two drill program this summer.
The exploration objectives for the Back River project in 2009 can be summarized as follows:
- To conduct a detailed induced polarization (IP) geophysical survey and detailed mapping to better define target locations and orientations prior to diamond drilling.
- To conduct a total of 5000 to 6000 metres of diamond drilling at the Goose Lake, focusing on priority targets outside the current deposit area.
- The 2009 budget is estimated to be $3.25 million.
Wishbone
An initial 2009 budget of $750,000 has been set for the summer exploration program for the Wishbone project to explore for both gold deposits and base metal rich volcanic massive sulphide (VMS) deposits. The Wishbone project covers a VMS district-scale land package over the highly prospective extension of the Hackett River Greenstone belt outside of the main Hackett River deposit area. In 2008, a 12,350 line km VTEM survey was completed by Dundee Precious Metals over the southern portion of the property. This survey successfully defined at least 200 prospective EM anomalies. Work will focus on following-up these anomalies and will include 1,200 m of diamond drilling. The initial priority will be given to gold and VMS targets that are proximal to Hackett River to best impact possible synergies with Hackett. In addition, an evaluation will begin to evaluate gold and base metal potential on the large block of claims to the north of Hackett River where favourable hydrothermal alteration has been previously identified in regional mapping.
Hackett River
Drilling will continue to test priority exploration targets on the Hackett River claim group with emphasis on near surface targets and targets that have higher value mineralization (copper, gold and silver). Limited drilling will be completed on the Jo Zone prior to resource calculation. Testing of these targets is designed to potentially impact the ongoing project studies by defining high value near surface mineralization that could enhance the earlier years of production.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc and the recently acquired Back River gold project and Wishbone claims in Nunavut along with several projects in the Red Lake gold camp. The Company is well capitalized with approximately $40 million in cash and marketable securities at March 31, 2009. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of the Hackett River silver-zinc and Back River gold projects; and 2) maintain a strong balance sheet to acquire accretive precious metals assets.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements.
Forward Looking Statements
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Anthony P. Walsh, President & CEO
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sabina Silver Corporation (TSX VENTURE:SBB) (the "Company") today announced completion of the previously announced private placement financing. The private placement was comprised of 5,000,000 flow-through common shares at $1.20 per share and 12,000,000 common shares at $1.00 to raise gross proceeds of $18,000,000. The private placement was carried out on a bought deal basis by a syndicate of underwriters co-led by Dundee Securities Corporation and BMO Capital Markets, and including Paradigm Capital Inc., Haywood Securities Inc. and Research Capital Corporation.
"Sabina's Board and management are committed to maintaining a strong treasury to allow the Company to carry out its initiatives," said Tony Walsh, President & CEO. "Not only does this financing replenish our treasury after the costs of the Back River acquisition, but it enables us to get straight to work on our new projects as well as push forward with more work at Hackett River. The Company is also actively looking to broaden our portfolio of precious metals projects, preferably in North America, but outside of Nunavut."
In consideration for their services, the underwriters received a 6% commission on the proceeds. All the Shares issued pursuant to the private placement are subject to a four month hold period expiring October 30, 2009. The gross proceeds of approximately $6.3 million from the flow through common shares must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2010.
In addition to the brokered private placement, the Company has also arranged to sell on a non-brokered basis, 236,500 flow through shares at $1.20 per share and 25,000 common shares at $1.00 per share for gross proceeds of $308,000. The non-brokered private placement is subject to TSXV approval and is anticipated to close by the end of the week.
Back River Gold Exploration
Work at Back River will focus on the Goose Lake deposit which currently hosts 603,000 indicated ounces of gold at 11.9 g/t and 295,000 inferred ounces at 9.2 g/t. The current resource lies within a thick folded iron formation with a shallow plunging fold hinge. This makes Goose Lake deposit a favourable target for potential open pit development.
The Goose Lake camp was opened earlier this spring and a resupply program of fuel and drilling supplies was completed to support a two drill program this summer.
The exploration objectives for the Back River project in 2009 can be summarized as follows:
- To conduct a detailed induced polarization (IP) geophysical survey and detailed mapping to better define target locations and orientations prior to diamond drilling.
- To conduct a total of 5000 to 6000 metres of diamond drilling at the Goose Lake, focusing on priority targets outside the current deposit area.
- The 2009 budget is estimated to be $3.25 million.
Wishbone
An initial 2009 budget of $750,000 has been set for the summer exploration program for the Wishbone project to explore for both gold deposits and base metal rich volcanic massive sulphide (VMS) deposits. The Wishbone project covers a VMS district-scale land package over the highly prospective extension of the Hackett River Greenstone belt outside of the main Hackett River deposit area. In 2008, a 12,350 line km VTEM survey was completed by Dundee Precious Metals over the southern portion of the property. This survey successfully defined at least 200 prospective EM anomalies. Work will focus on following-up these anomalies and will include 1,200 m of diamond drilling. The initial priority will be given to gold and VMS targets that are proximal to Hackett River to best impact possible synergies with Hackett. In addition, an evaluation will begin to evaluate gold and base metal potential on the large block of claims to the north of Hackett River where favourable hydrothermal alteration has been previously identified in regional mapping.
Hackett River
Drilling will continue to test priority exploration targets on the Hackett River claim group with emphasis on near surface targets and targets that have higher value mineralization (copper, gold and silver). Limited drilling will be completed on the Jo Zone prior to resource calculation. Testing of these targets is designed to potentially impact the ongoing project studies by defining high value near surface mineralization that could enhance the earlier years of production.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc and the recently acquired Back River gold project and Wishbone claims in Nunavut along with several projects in the Red Lake gold camp. The Company is well capitalized with approximately $40 million in cash and marketable securities at March 31, 2009. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of the Hackett River silver-zinc and Back River gold projects; and 2) maintain a strong balance sheet to acquire accretive precious metals assets.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements.
Forward Looking Statements
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Anthony P. Walsh, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Sabina Silver CorporationNicole Hoeller
Director, Investor Relations
1-888 648-4218
nhoeller@sabinasilver.com
www.sabinasilver.com
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