Sabina Gold & Silver announces $520M financing package to build Goose gold mine in Nunavut

Sabina Gold & Silver (TSX: SBB) announced Tuesday that it has completed final documentation with Orion Mine Finance and Wheaton Precious Metals with respect to a construction financing package totaling approximately US$520 million in aggregate.

The company said that the financing package will fund construction and development of the Goose gold mine at Sabina's 100% owned Back River project in Nunavut, Canada.

According to the company's statement, the financing package is comprised of a US$225 million senior secured debt facility (Orion), a US$75 million gold prepay facility (Orion), a US$125 million gold stream arrangement (Wheaton), and

a US$95 million private placement of Sabina common shares (both Orion and Wheaton).

The company added that the CAPEX in the project's most recent feasibility study is US$466m (C$610m) and that the project received its final major authorization on June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.

The company also pointed out it is now working to finalize 2022 work programs and budgets to meet first gold pour in Q1 2025.

"This is a major milestone for Sabina," commented Bruce McLeod, President and CEO. “We are proud to welcome Orion and Wheaton as significant Sabina equity holders. Their participation in financing the Goose mine validates the sound exploration, engineering, environmental and community work we have done on the project and supports our approach to development of this prolific gold district."

Sabina Gold & Silver is an emerging gold mining company that 100% owns the district scale, advanced, high grade Back River Gold District in Nunavut, Canada.

Sabina recently filed an updated feasibility study on its first mine on the district, the Goose mine, which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, with a post-tax IRR of ~28% and NPV5% of C$1.1B.

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.