Mining News: Back River gold gets review board okay
Sabina Gold & Silver Corp. Dec. 20 reported that the Nunavut Impact Review Board has issued the final project certificate for Back River, allowing the company to advance the gold mine project through the final licensing and permitting stage. Sabina submitted the original environmental impact statement for a 3,000metric-ton-per-day mine at Back River project late in 2015. NIRB recommended to the Minister of Indigenous and Northern Affairs Canada not to advance the project through permitting. After reviewing the recommendation, the federal regulators returned the project to NIRB for further consideration. Answering a call for further information, Sabina provided the review board an addendum early in 2017, which led to the eventual issuance of the project certificate.
Back River is now in the final regulatory and licensing phase. “After a multi-year environmental assessment process, we are very pleased to end the year with the issuance of the final project certificate for Back River,” said Sabina President and CEO Bruce McLeod. In conjunction with the issuance of the project certificate, Zhaojin International Mining Co. agreed to purchase 24.93 million shares of Sabina at a price of C$2.65 per share for a total investment of roughly C$66.1 million. Upon completion of the private placement, Zhaojin International will own approximately 9.9 percent of Sabina’s issued and outstanding common shares
on a non-diluted basis. "We are very excited to welcome Zhaojin, a leading Chinese gold producer, as a strategic investor,” said McLeod. “This financing with Zhaojin provides Sabina with a cornerstone investor that has financial and technical resources to assist us in advancing the project to production.” “With this capital in hand, we are currently working on finalizing plans and budgets for 2018 which will focus on de-risking the project with initial preconstruction activities as well as furthering exploration activities," the Sabina CEO added. According to a 2015 feasibility study, the 3,000-metric-ton-per-day mine submitted for permitting would average 198,100 ounces of gold per year over an 11.8-year mine life at a cost of US$534 per oz.