Sabina Silver Corporation

Sabina Silver Corporation

June 11, 2009 08:08 ET

Sabina Silver Corporation Announces $12.0 Million "Bought Deal" Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2009) -


Sabina Silver Corporation (the "Corporation") (TSX VENTURE:SBB) is pleased to announce that it has entered into an agreement with Dundee Securities Corporation and BMO Capital Markets which have, on behalf of themselves and a syndicate of underwriters including Paradigm Capital Inc., Haywood Securities Inc. and Research Capital Corporation, have agreed to purchase, on a bought deal basis, 6,000,000 common shares (the "Common Shares") of the Corporation at a purchase price of $1.00 per Common Share, and 5,000,000 flow-through common shares (the "Flow-Through Common Shares") at a price of $1.20 per Flow-Through Common Share for aggregate gross proceeds of $12,000,000. The underwriters also have the option to purchase for resale up to an additional $3,000,000 Common Shares or Flow-Through Common Shares (in any combination) on the closing date. The gross proceeds of the Flow-Through Common Shares shall be used for exploration on the Corporation's Nunavut projects and the net proceeds of the Common Shares for general corporate purposes. A cash commission of 6% will be paid on the gross proceeds raised in the offering.

The Common Shares and Flow-Through Common Shares to be sold under this offering will be offered by way of a private placement in the Provinces of British Columbia, Alberta, and Ontario and the Common Shares to be sold under this offering will also be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on June 30, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, and other applicable securities regulatory authorities. All securities issued will be subject to a four month hold period.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc and the recently acquired Back River gold project and Wishbone claims in Nunavut along with several projects in the Red Lake gold camp. The Company is well capitalized with approximately $40 million in cash and marketable securities at March 31, 2009. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of the Hackett River silver-zinc and Back River gold projects; and 2) maintain a strong balance sheet to acquire accretive precious metals assets.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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