Proceeds will be used to fund the construction and development of the Goose mine at Sabina’s 100% owned Back River gold project, situated along an 80 km long belt containing a series of gold deposits in southwestern Nunavut.
“This is a major milestone for Sabina,” Bruce McLeod, president and CEO, said. “We are proud to welcome Orion and Wheaton as significant Sabina equity holders. Their participation in financing the Goose mine validates the sound exploration, engineering, environmental and community work we have done on the project, and supports our approach to development of this prolific gold district.”
A 2021 feasibility study on the project showed an after-tax NPV of C$1.1 billion and an after-tax IRR of 27.7%. At 6 g/t Au, the Back River gold district represents the highest-grade undeveloped open pits in the world.
The capex in the project’s most recent feasibility study is C$610 million ($466m). Relative to all aspects of the package, debt and streams make up roughly 82% of the funding, with the equity component contributing the remaining 18%.
“The completion of this milestone sets Sabina apart from other developers: we have a financed, fully permitted, significantly advanced, high-grade gold project in a tier-one mining jurisdiction. The Goose mine is the first mine on the 80 km Back River gold district,” McLeod added.
Sabina is now working to finalize 2022 work programs and budgets to meet first gold pour, targeted for Q1 2025.
