Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Sabina Gold & Silver (TSX: SBB) has completed a bought deal offering with a syndicate of underwriters led by BMO Capital Markets for gross proceeds of C$126.5 million (approximately $100m). The company is owner of the Back River gold district in Nunavut hosting a total of six properties, including the advanced-stage Goose mine project.
This round of financing saw Sabina issue approximately 81.6 million of its common shares, including the underwriters’ over-allotment option, all priced at C$1.55 each. Zhaojin International Mining participated in this financing and purchased about 7.8 million shares for a total of C$12.1 million.
The bought deal is part of a comprehensive $520 million financing package for the Goose mine announced by the company in February. Prior to this, Sabina has closed approximately C$114.8 million in equity placements with Orion Mine Finance and Wheaton Precious Metals.
Completion of the bought deal also allows the company to unlock the previously arranged Orion credit facilities and the Wheaton stream arrangement, totalling $300 million and $125 million respectively.
“Including debt, stream and equity, we have now arranged a total of approximately $646 (C$807) million in project financing,” Sabina CEO Bruce McLeod said in a news release. “This additional equity enables us to advance procurement of critical items and re-align our budgets and programs for 2022, which we look forward to announcing in the coming weeks.”
Proceeds will be used to develop the company’s Goose mine, which according to a 2021 feasibility study is expected to produce 223,000 oz. of gold a year for 15 years, with a payback period of 2.3 years.
