Sabre Gold Announces Sale Of Royalty For Us$7 Million
VANCOUVER, Jan. 30, 2023 (GLOBE NEWSWIRE) — Saber Gold Mines Corp. (TSX: SGLD, OTCQB: SGLDF) (“Saber Gold” or the “Company”) announces the sale of the 1% Net Smelter Return Royalty (the “GC Royalty”) attributable to the Kerr-Addison -Mine claims owned by Gold Candle Ltd. for cash proceeds of US$7 million. In connection with the sale, the Company completed the previously announced proposed sale of the GC royalty (October 24, 2022) and will pay the agreed termination fee of US$500,000.
The Company intends to use the net proceeds from the sale of this non-core asset to improve the profitability of our key assets. Accordingly, the Company will repurchase two-thirds of the 4.5% gross production license at the Company’s Copperstone mine, pay off $2 million of the Company’s outstanding debt and inject the remaining cash into the Company’s treasury.
“This cash sale allows the Company to achieve its stated goals of improving our balance sheet while improving the projected economics of the Copperstone mine,” said CEO and President Andrew Elinesky, “along with our recently completed financing and sale of another smaller mine Non-core asset, we are in a much stronger position to accelerate development of our fully permitted Arizona asset.”
In addition, the Company anticipates that its currently payable debt will be extended by 18 months from the current December 31, 2023 due date.
About Saber Gold Mines Corp.
Saber Gold is a diversified, multi-asset gold producer in North America that owns a 100% interest in both the fully licensed and permitted Copperstone gold mine in Arizona, USA and the Brewery Creek gold mine in North America’s Yukon, Canada, both the former producers are. Management intends to resume production at Copperstone followed by Brewery Creek in the near future. Saber Gold also has other investments and projects in various stages of development.
Saber Gold’s two advanced projects have approximately 1.5 million ounces of gold in the measured and indicated categories and approximately 1.2 million ounces of gold in the inferred category. In addition, both Copperstone and Brewery Creek have significant exploration potential with a combined land package in excess of 230 square kilometers which is subject to further drill testing against currently identified high priority targets. Saber Gold is managed by a seasoned team of mining professionals with experience in exploration, mine construction and operations.
For more information, please visit Saber Gold Mines Corp.’s website: (www.sabre.gold).
CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking information pursuant to Canadian securities legislation, including statements regarding the Company’s expectations regarding the use of proceeds from the sale of the GC Royalty; the impact of such use on the Company’s financial condition, the economics of the Copperstone mine and the Company’s ability to develop the Copperstone mine. These forward-looking statements involve various risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results could differ materially from those contained in such statements. These uncertainties and risks include, among others: the ability to use the proceeds from the sale of the GC Royalty as disclosed; the strength of Canada’s economy; the price of gold; operational, funding and liquidity risks; dependence on third parties, exploration risk, failure to upgrade resources, the extent to which mineral resource and reserve estimates reflect actual mineral resources and reserves; the extent to which factors exist that would render a mineral deposit economically viable; and the risks and hazards associated with underground operations and other risks associated with the mineral exploration and development industry. Risks and uncertainties related to Saber Gold’s business are discussed in more detail in the Company’s disclosure materials, including the annual information form and MD&A, filed with securities regulators in Canada and available at www.sedar.com and readers will urged to read these materials. Except as required by law, Saber Gold undertakes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from such statements.