On June 3, 2020, Sabina Gold & Silver Corp. (TSX: SBB) (OTCQX: SGSVF) reported that that it had completed its previously announced bought deal offering, raising gross proceeds of $55 million.
The offering was fully subscribed and was comprised of a combination of 12,500,000 common shares, 2,100,000 flow-through common shares, 5,224,000 charity flow-through common shares, and 1,638,000 super charity flow-through common shares. The underwriters, led by BMO Capital Markets and RBC Capital Markets, also elected to exercise their over-allotment option to purchase 2,900,000 common shares.
In addition to the offering, Zhaojin International Mining Co., Ltd. elected to maintain its 9.9% holdings resulting in the issuing of 2,882,082 common shares of Sabina for gross proceeds of approximately $5.8 million. This tranche of funds is expected to close before June 10, 2020.
Including Zhaojin’s participation, Sabina expects to raise a total of approximately $61 million by issuing approximately 27 million shares.
Sabina is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in Nunavut, Canada, one of the world’s newest, politically stable mining jurisdictions.
Gowling WLG advised Sabina with respect to this financing with a team that included Brett Kagetsu, Tara Amiri and Raymond Ong (corporate finance) and Brent Kerr and Anita Yuk (tax), with the assistance of paralegal Toni Vodola.