Sabina Gold & Silver Corp (OTCMKTS:SGSVF) (TSE:SBB) Stock Rallies: Company Announces Private Placement

Shares of Sabina Gold & Silver Corp (OTCMKTS:SGSVF) (TSE:SBB) was in action in the previous session.

Market Stats

On Friday, SGSVF stock gained 12.75% to $1.16 with more than 272K shares, compared to its average volume of 170K shares. The stock moved within a range of $0.9900 – 1.1800 after opening trading at $0.99.           

Sabina Gold & Silver Reports 1st Tranche of Equity Private Placement for ~ CAD$75.5 M Closed

Emerging gold mining owning 100% district scale, advanced, high grade Back River Gold District in Nunavut, Canada, Sabina Gold & Silver Corp (OTCMKTS:SGSVF) (TSE:SBB) on February 11, 2022 announced closing the first tranche of US$95 million equity private placement to Orion Mine Finance as well as Wheaton Precious Metals Corp.  This is related to the earlier announced Project Financing Package for funding construction as well as development of Goose Mine at its 100% owned Back River Project in Nunavut, Canada.

First tranche will be pertaining to US$520 million financing package comprising of issuing 46,209,769 common shares of the firm to Orion as well as 12,322,605 common shares to WPM. The total net proceeds will be about CAD$75.5 million.

Bruce McLeod, President & CEO, expressed delight on WPM’s position as well as  Orion’s addition to Sabina’s shareholder registry.

The CEO added that the investment demonstrates the confidence in advantages of Goose mine and Sabina’s ability to deliver the project. McLeod added that he looks forward on continuing the progress as the firm kicks off the 2022 activities.  WPM and Orion have subscribed to total private placement of 72,732,692 as well as 19,395,384 common shares of the firm at a price C$1.30.

The private placement will close in three tranches beginning with the current one, second one by end of quarter one and the third in second quarter of 2022. Proceeds will be harnessed for funding 2022 development initiatives as well as procurement commitments.

Key Quote

“We are very happy with WPM’s increased position and Orion’s addition to Sabina’s shareholder registry,” said Bruce McLeod, President & CEO. “We believe their investment in the Company reflects their confidence in the merits of Goose mine and in Sabina’s ability to execute and deliver the Project. We look forward to continuing to report on our progress as we begin to kick off our 2022 activities”

Traders Corner

SGSVF stock is trading above the 20-Day and 50-Day Moving averages of $1.06 and $1.08 respectively. However, the stock is trading below the 200-Day moving average of $1.26.