Sabina Gold & Silver Announces Financial Results for the Quarter Ended September 30, 2017
November 14 2017 - 6:18PM
Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”)
(TSX:SBB) reports the financial results for the quarter ended
September 30, 2017.
“With the positive recommendation received from
the Nunavut Impact Review Board (“NIRB”) in July, the third quarter
of 2017 saw a milestone de-risking event for the Company,” said
Bruce McLeod, President & CEO. “While the NIRB report is with
the Minister of Indigenous and Northern Affairs Canada (“INAC”)
pending a decision, we have continued to advance the project
forward by advancing basic engineering and other site assessment
activities at the same time as continuing to drill high impact
targets at the Goose property. We are very pleased with the results
from both the Umwelt and Llama drilling to date which demonstrate
the significant mineral endowment of the property. We look
forward to a Minister’s decision, we anticipate could be before the
end of the year, and to fully assessing our 2017 drilling to
determine the campaign focus for 2018.”
Q3 2017 Highlights:
- The Company had cash and cash equivalents and short-term
investments of $38.5 million at September 30, 2017.
- On July 18, 2017, the NIRB recommended to the Minister of INAC
that development of the Company’s Back River gold project should
proceed to the licensing phase.
- On September 12, 2017 the Company completed a non-brokered
private placement flow-through financing of 2,163,265 common
flow-through shares at a price of $2.85 per share for gross
proceeds of approximately $6.2 million. The total gross proceeds
from the financing must be used to incur Canadian exploration
expenditures as defined by the Income Tax Act (Canada) by December
31, 2018.
- During the quarter, the Company continued with its second phase
of drilling at Goose which included 9,868 meters of drilling in 17
holes, including drill hole 17GSE516B at Llama which returned 9.48
g/t au over 38.55 meters, including 14.43 g/t au over 21.25
meters.
- Subsequent to the quarter, on October 18, 2017, the Company,
jointly with the Kitikmeot Inuit Association (“KIA”) announced
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 (“FA”). The FA, upon completion would be
a comprehensive agreement which would set out rights and
obligations with respect to surface land access on Inuit owned land
and will include an Inuit Impact and Benefit Agreement (“IIBA”)
among other obligations required by the Nunavut land claims
agreement, including the following key provisions:
- A 20 year term;
- Surface access rights for exploration, development, mine
construction and mine operations activities;
- Certain milestone payments including:
- Annual payment to the KIA of up to $1
million;
- Issuance to the KIA of 6.7 million shares of Sabina;
- Grant to the KIA of a 1% net smelter royalty on future
production at Back River;
- An initial investment of $4 million into regional wealth
creation initiatives in the Kitikmeot;
- For the quarter ended September 30, 2017, the Company reported
net loss of $0.5 million or $0.00 per share.
Financial Results
For the three months ended September 30, 2017,
the Company reported a net loss of $0.5 million or $0.00 per share,
in comparison to a net loss of $3.7 million or $0.02 per share in
the corresponding period of 2016. The difference quarter over
quarter was primarily the result of a write-down ($5.2 million) on
the Wishbone properties in 2016 and higher finance income in Q3
2017 ($0.7 million) on amortization of flow-through premium
associated with the flow-through financing completed in 2017.
Partially offsetting were higher operating and deferred income tax
expenses in Q3 2017 than the comparable period. Q3 2017
operating expenses were $0.5 million higher than the comparable
period due to: the higher professional services fees of $0.3
million related to Back River project financing; higher travel
expenses of $0.1 million for marketing activities; and, higher
stock based compensation resulting from more stock options granted
in Q3 2017 than the comparable period.
For the nine months ended September 30, 2017,
the Company reported a net loss of $2.5 million, favourable by $1.6
million compared to the same period of 2016. As noted above, the
decrease in loss period over period was mainly due to the result of
a write-down of the Wishbone properties and higher operating and
deferred income tax expense in 2017 compared to 2016.
Partially offsetting was a higher net gain ($0.6 million) realized
on the sale of Pure Gold shares in 2016 compared to 2017.
For the full September 30, 2017 interim
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 a
well-financed, emerging precious metals company with district
scale, world class undeveloped assets in one of the world’s newest,
politically stable mining jurisdictions: Nunavut, Canada.
In September, 2015, 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. At a US$1,150 gold
price and a 0.80 exchange rate, the Study delivers a potential
after tax internal rate of return of approximately 24.2% with an
initial CAPEX of $415 million.
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 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 licenses 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, 2016 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 1M9Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
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