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Sabina shares higher on Nunavut project restart

Sabina Gold & Silver shares closed 10% higher on Friday after the Vancouver-based company announced plans to restart exploration and development activities at Back River in Nunavut, in July.
Sabina shares higher on Nunavut project restart Sabina shares higher on Nunavut project restart Sabina shares higher on Nunavut project restart Sabina shares higher on Nunavut project restart Sabina shares higher on Nunavut project restart

Sabina Gold & Silver will restart its 2020 exploration programme at Back River in July

Staff Reporter

The company expects to close a C$49 million fully subscribed financing on Wednesday, setting it up to restart exploration drilling deferred in March, and continue project pre-development activities. Partner Zhaojin International Mining has exercised its pre-emptive right to maintain its 9.9% position in Sabina.

"Although we will be working at a reduced camp capacity due to recently established COVID-19 safety protocols, we can once again begin de-risking the project as we advance towards becoming a gold producer," said CEO Bruce McLeod.

"Over the last two years, while markets have not been conducive to obtaining full project financing on acceptable terms, we were able to fund and complete some initiatives critical to the success of the project. These proceeds will enable us to continue to do this and to advance the project to a state of readiness for a production decision when the time is right."

Sabina plans to continue 6,500m of definition and expansion drilling on the Vault Zone at the Umwelt underground mine.

The flow-through component of the offering will be used to start an exploration decline at Umwelt.

Also planned are other pre-development works including an extension of the airstrip to allow heavy-lift aircraft, roads, and pre-development pads and lay down areas at the Goose site. The company also plans to complete engineering work to update project capital cost estimates.

Sabina shares (TSX: SBB) are trading 70% higher than a year ago at $1.95, capitalising the company at $579 million (US$420.4 million).