VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/12/10 -- Sabina Gold & Silver Corp. (the "Company") (TSX: SBB) reported today the financial results for the quarter ended September 30, 2010.
Q3 Highlights
During the quarter:
-- the Company continued to report significant results from drilling at its
Llama and Umwelt discoveries at the Back River project in Nunavut.
-- a new lens of massive sulphide mineralization was discovered at the East
Cleaver deposit at the Company's Hackett River Project, Nunavut.
-- 2010 exploration programs were completed by mid-September
-- the Company engaged BMO Capital Markets to solicit investors or partners
for the Hackett River Project and to advise the Company in its pursuit
of strategic alternatives to accelerate the development of the project.
-- the Company completed a bought deal equity financing on August 5,
qualified by short form prospectus of 9,545,000 common shares at $2.70
per share for gross proceeds of $25.8 million.
-- in conjunction with the filing of the Short Form Prospectus, the Company
filed an updated technical report on the Back River Project, Nunavut
(filed on SEDAR).
Subsequent to the quarter on November 5, 2010, the Company completed a bought deal equity financing of 2,990,660 flow-through common shares at $5.35 per share for gross proceeds of approximately $16.0 million. The Company also concurrently completed a non-brokered placement of 119,715 flow-through shares on the same terms as the brokered financing. Gross proceeds of these financings must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2011.
"The first three quarters of 2010 have been productive and exciting for us," said Tony Walsh, President & CEO "The Company has performed very well on all levels and we have set the bar for even more work in 2011. The recently completed financing in conjunction with our already strong treasury should enable us to end the year with approximately $75 million. We expect to spend approximately $40 - $45 million on our Nunavut projects in 2011 (subject to Board approval). Our strong cash position will provide the funding to aggressively advance our projects well into 2012."
Financial Results
For the three and nine month period ended September 30, 2010, the Company reported net losses of $0.6 million and $3.1 million respectively compared to $0.5 million and $2.3 million in the corresponding periods of 2009. The loss for the nine month period in 2010 was $0.8 million higher due largely to an unrealized gain on held for trading investments of $0.9 million recorded in 2009.
The Company had cash and cash equivalents and short-term investments of $60.9 million at September 30, 2010 compared to cash and cash equivalents of $45.0 million at December 31, 2009.
For the full September 30, 2010 financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.
The properties consist of the Hackett River silver-zinc Project, and the Back River Gold Project, both advanced exploration properties, as well as the Wishbone Claims, a vastly prospective grass roots project.
Statements relating to development, feasibility and exploration work at the Hackett River project the Back River gold project and the Wishbone Greenstone Belt, the Terms Sheet on the Cook Lake properties and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained in a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations, failure to negotiate a formal option agreement on the Cook Lake property, unsatisfactory due-diligence results on the Cook Lake property and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2009.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Tony Walsh, President and CEO
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1 888 648-4218 or 604 998 4175
604 998 1051 (FAX)
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com
