Sabina Gold & Silver Corp. (SBB-T) (“Sabina”) and the Kitikmeot
Inuit Association (“KIA”) announced today the execution of a
binding term sheet setting forth the principle terms that are to be
included in a definitive Framework Agreement (“FA”). The FA,
upon completion, would be a comprehensive agreement which would set
out rights and obligations with respect to surface land access on
Inuit owned land and will include an Inuit Impact and Benefits
Agreement (“IIBA”) among other obligations required by the Nunavut
Agreement.
“On behalf of the KIA Board, I am pleased to
announce the signing of this binding term sheet,” said Stanley
Anablak, President of the KIA. “We believe we have negotiated
terms that focus on the interests of Inuit of the Kitikmeot Region
providing them with training, employment, business opportunities
and direct economic benefits from the Back River Project.
Throughout our negotiations KIA’s primary concern was including
appropriate measures in the term sheet to conserve the land, water
and wildlife while advancing socio-economic development for the
region. We have made significant advancements in both
socio-economic and caribou mitigation concerns. We thank the Sabina
team for their effort and commitment to complete the term sheet and
look forward to completing the definitive agreements in the coming
months."
Bruce McLeod, President & CEO of Sabina
commented, “The FA terms have been negotiated in good faith with a
result that benefits both Sabina and all of our Nunavut
stakeholders. We appreciate the considerable effort by the
KIA throughout the process and are looking forward to working with
the KIA upon completion of the FA to implement the initiatives
contemplated by the FA. We believe the FA terms demonstrate
our genuine long-term commitment to the Inuit of the Kitikmeot
Region and Nunavut, and that our already strong partnerships in the
region will be made stronger.”
The FA, when completed, would have a maximum term
of 20 years and would include among others, the following key
provisions and agreements:
- Land use licenses which would permit Sabina to conduct
non-exclusive exploration work at Back River;
- Advanced exploration leases permitting various advanced
exploration and pre-production activities at Back River;
- Commercial leases authorizing the development of mines and
related operations and closure activities at the Goose
Property;
- A 1% net smelter return royalty paid to the KIA on production
at Back River on the properties that are subject to a commercial
lease;
- A grant of 6.7 million Sabina shares to the KIA upon the
effective date of the IIBA
- An IIBA setting out commitments associated with Inuit
employment, training and education, Kitikmeot business
opportunities, formation of an Inuit Environmental Advisory
Committee and investments in community infrastructure projects with
the objective of supporting regional wealth creation initiatives
within Kitikmeot communities;
- An initial investment of $4 million in regional wealth creation
initiatives in the Kitikmeot, $2 million of which could occur
following execution of definitive agreements, and the remainder no
later than upon a production decision, with additional payments
commencing the third year following commercial production if
Sabina-related employment targets are not achieved. The
purpose of the regional wealth creation initiative is to create new
long term operating jobs outside of the mine to expand and
diversify the Kitikmeot economy;
- An annual payment to the KIA of up to $1 million to cover KIA's
cost of implementing the FA; and
- Water and wildlife compensation agreements including additional
payments if Sabina fails to implement caribou mitigation
commitments regarding calving and post-calving periods made to the
Nunavut Impact Review Board.
Under the binding term sheet, the parties have
agreed to negotiate in good faith towards completing the FA and the
other definitive agreements contemplated in the term sheet.
The transactions contemplated in the term sheet are subject to the
completion of the FA and such definitive agreements. Work is
ongoing on the FA and definitive agreements, which are targeted to
be completed by early in 2018. The term sheet and the FA,
involving the issuance of 6.7 million Sabina shares to the KIA, are
subject to any necessary regulatory and Toronto Stock Exchange
approval.
The Kitikmeot Inuit
Association
The Kitikmeot Inuit Association (KIA) was
incorporated in 1976 to represent and promote the interests of the
Kitikmeot Inuit. The KIA is a democratically elected
not-for-profit society.
KIA's mandate is to “manage Kitikmeot Inuit lands
and resources, and to protect and promote the social, cultural,
political, environmental and economic well-being of Kitikmeot
Inuit”.
KIA owns 92,619 Km2 of surface Inuit Owned Land in
the Kitikmeot Region. The Back River Project footprint overlays
several parcels of Inuit Owned Land south of Bathurst Inlet. KIA is
also designated to implement many rights from the Nunavut Agreement
to represent Kitikmeot Inuit related to land management,
socio-economic, water, and wildlife matters that are relevant to
the Back River Project.
Sabina Gold & Silver Corp
Sabina Gold & Silver Corp. is a well-financed,
emerging precious metals company with district scale, advanced,
high grade gold assets in one of the world’s newest, politically
stable mining jurisdictions: Nunavut, Canada.
Sabina released a Feasibility Study on its 100%
owned Back River Gold Project which presents a project that has
been designed on a fit-for purpose basis, with the potential to
produce ~200,000 ounces a year for ~11 years with a rapid payback
of 2.9 years (see “Technical Report for the Initial Project
Feasibility Study on the Back River Gold Property, Nunavut, Canada”
dated October 28, 2015). At a US$1,150 gold price and a 0.80
(US$:C$) exchange rate, the Study delivers a potential after tax
internal rate of return of approximately 24.2% with an initial
CAPEX of $415 million.
In addition to Back River, Sabina also owns a
significant silver royalty on Glencore’s Hackett River
Project. The silver royalty on Hackett River’s silver
production is comprised of 22.5% of the first 190 million ounces
produced and 12.5% of all silver produced thereafter.
The Company had approximately C$36.6 million in
cash and equivalents on June 30, 2017, not including the $6 million
flow-through financing completed in September 2017.
For further information please contact:
Paul Emingak, Executive Director, Kitikmeot
Inuit Association(867) 983-2458
execdir@kitia.ca
Nicole Hoeller, Vice-President, Communications,
Sabina Gold & Silver Corp:1 888
648-4218
nhoeller@sabinagoldsilver.com
All Sabina news releases and further information
can be found on the website at www.sabinagoldsilver.com, or on
SEDAR at www.sedar.com.
Forward Looking StatementsThis
news release contains “forward-looking information” within the
meaning of applicable securities laws (the “forward-looking
statements”), including our ability to negotiate and enter into
definitive agreements and to complete the transactions contemplated
therein. These forward-looking statements are made as of the date
of this news release. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. Such factors and assumptions include, among others, the
effects of general economic conditions, commodity prices, changing
foreign exchange rates and actions by government and regulatory
authorities and misjudgments in the course of preparing
forward-looking statements. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with exploration and project development; the need for
additional financing; the calculation of mineral resources and
reserves; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; government
regulation; obtaining and renewing necessary licences and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2016 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws. This news release has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO 1800-555
Burrard Street, Vancouver, BC V7X 1M9 Tel 604
998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
Sabina Gold and Silver (TSX:SBB)
Historical Stock Chart
From Apr 2024 to May 2024
Sabina Gold and Silver (TSX:SBB)
Historical Stock Chart
From May 2023 to May 2024