Sabina drives closer to kick-starting western Nunavut gold mine

Key takeaways: 

• Goose mine could be open by 2025 in the territory’s Kitikmeot province.
• The mine could be making gold as soon as 2025.

By 2025, Nunavut’s Kitikmeot region could see a new gold mine join into production, Sabina Gold and Silver Corp.’s Goose gold mine.

The firm has been performing toward opening a mine in its Back River plan for at least a decade. 

Sabina plans to arrange to progress its project to production soon, said firm vice-president Nicole Hoeller.

“We wanted to have our financing in position before,” Hoeller stated.

Investors in the Goose project have China’s fourth-largest gold maker Zhaojin International Mining Co., Ltd.

Zhaojin first funded nearly $66 million to Sabina in 2018 for a 9.9 percent partnership deal, offering Zhaojin a seat on Sabina’s board.

To hold its participation in Sabina at 9.9 percent, Zhaojin has continued to finance in Sabina as the firm has looked for more funds and issued more shares to invest in its mine.

Also read: Cambridge Bay drafts $100 tax per passenger for cruise vessels this season

The most recent amount accepted by Sabina from Zhaojin was $12 million, revealed on June 13.

Hoeller stated that Zhaojin sees Sabina as an asset opportunity.

“Zhaojin is an investor. They want us to thrive, and they want to make cash on their investment,” Hoeller stated.

Zhaojin has funded a sum of $108 million in Sabina since its initial investment in 2018, Hoeller told. 

Hoeller said Zhaojin’s involvement couldn’t be compared to the offered investment in 2020 of TMAC Resources Inc.’s Hope Bay mine, also in the Kitikmeot area, by the Shandong Gold Mining, a state-owned Chinese mining firm.

Ottawa thwarted that seizure in December 2020 after a national security review.

Other Sabina investors have Orion Mine Finance and Wheaton Precious Metals in a $520 million US financing package for Sabina declared in February.

Source – cbc.ca