Construction funding paves way for new 223 000 oz/y Nunavut gold mine
Emerging Canadian miner Sabina Gold and Silver on Tuesday announced a “major milestone” with the completion of final documentation for $520-million in construction financing for the 223 000 oz/y Goose mine at its Back River project, in Nunavut.
The funding is provided by Orion Mine Finance and Wheaton Precious Metals, which are set to be significant equity holders in Sabina.
“Their [Orion and Wheaton’s] 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,” said president and CEO Bruce McLeod.
The financing comprises a $225-million senior secured debt facility, a $75-million gold prepay facility, a $125-million gold stream arrangement, and a $95-million private placement of Sabina shares.
The most recent feasibility study for Goose indicates that Sabina will require $466-million, or C$610-million, in capital expenditure for the mine.
The financing enables Sabina to continue on its path to producer status and to first gold at the Goose mine in the first quarter of 2025.
“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,” said McLeod.
The Goose mine is the first mine on the 80 km Back River Gold district.
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