North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Sabina Gold & Silver Corp. Jan. 22 announced the closing of a C$66.1 million financing that involved Zhaojin International Mining Co. acquiring 24.93 million Sabina Gold shares at C$2.65 each.

As a result of this investment, the China-based gold mining company owns roughly 9.9 percent of Sabina’s issued and outstanding common shares on a non-diluted basis.

Zhaojin International is a subsidiary of Zhaojin Mining Industry Co., a leading Chinese gold producer and one of China’s largest gold smelting companies.

Sabina will apply the funds towards developing a mine at its Back River gold project in western Nunavut.

“As experienced gold miners, we also look forward to their technical input as we advance the Back River gold project,” said Sabina Gold President and CEO Bruce McLeod. “We are very pleased with our new financial partnership and look forward to advancing Back River towards production.”

In December, the Nunavut Impact Review Board has issued the final project certificate for Back River, allowing the company to advance the gold mine project through the final licensing and permitting stage.

According to a 2015 feasibility study, the 3,000-metric-ton-per-day mine submitted for permitting would average 198,100 ounces of gold per year over an 11.8-year mine life at a cost of US$534 per oz.

In anticipation of final permitting, Sabina plans to use the new funding to continue to de-risk the Back River project. The work planned for this year includes completing pre-construction earthworks; early procurement commitments; logistical improvements; and assembling the Back River project execution team.

Sabina is also preparing for a significant exploration program at Back River this year.

The company plans to mobilize crews and equipment for the winter phase of the 2018 program at the end of February.

A more detailed description of 2018 activities and budgets is expected in February.

–SHANE LASLEY