NUNAVUT – Sabina Gold and Silver Corp. of Vancouver has arranged a non-brokered private placement of 14.4 million flow-through shares to raise $20 million. The proceeds will be used to advance exploration at the company's Back River gold project 520 km northeast of Yellowknife, NT.
Sabina says Back River has enough contained ounces (4.66 million in the measured and indicated category) to push the project towards production, but more drilling is needed to de-risk the project. The extra money will make it possible to extend the work season at the site.
Mineralization at Back River consists of a series of deposits in banded iron formation. The company is most interested in the George and Goose deposits, and has started a preliminary economic assessment for them.
The financing is scheduled to close on or about June 10, 2013, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
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