Emerging precious metals company Sabina Gold and Silver has entered into an agreement with a syndicate of underwriters to raise C$49-million, which it would use to advance the Back River gold project, in Nunavut.
Led by BMO Capital Markets and RBC Capital Markets, the underwriters have agreed to buy, on a bought-deal basis, a combination of shares, including common, flow-through, charity flow-through and super charity flow-through common shares.
The common shares will be offered at C$2 each, the flow-through shares at C$2.40 each, the charity flow-through shares at C$2.68 a share and the super charity flow-through shares at C$2.90 apiece.
The net proceeds are for the completion of detailed engineering, extension of the airstrip at Goose, completion of geotechnical drilling and acquisition of accommodation complex for future mine construction and operations, to start the advancement of an underground decline to advance exploration on the Umwelt zone, and for working capital and general corporate purposes.
Sabina has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of securities issued as common shares to cover over-allotments, if any.
The offering is expected to close on or about June 3, 2020 and is subject to Sabina receiving all necessary regulatory approvals.
The company has provided a financing notice to Zhaojin International Mining about the exercise of Zhaojin’s participation right under its shareholder agreement with the company. Pursuant to the Zhaojin participation right, Zhaojin has a 48-hour right to elect to purchase such number of common shares at the offering price by way of a private placement to either maintain its 9.9% holdings in Sabina’s common shares or to subscribe for such number of common shares as is equal to 33% of the common shares sold under the offering and prior private placements in which Zhaojin did not participate at the 33% level.