2011 Sabina news ReleaseWe believe that this transaction is innovative and provides significant value to our shareholders going forward,” said Tony Walsh, President & CEO “The deal marks the evolution of Sabina into a purely precious metals company with significant gold and silver assets. We believe the value of our silver royalty will increase as Xstrata brings Hackett closer to production.” The value created for Sabina shareholders from this transaction includes: -
- Potential significant cash flow at no cost from silver royalty. 22.5% x 190 million ounces of silver = ~42.75 million ounces of silver, plus
- 12.5% x actual Life Of Mine silver production from new silver discoveries
- Significant leverage to future increases in silver price;
- Ability to leverage the silver royalty to pay for construction of Back River either through sale or pledge against debt, mitigating against future dilution;
- Xstrata Zinc, the world’s largest zinc producer, presents the potential for increased production at Hackett River and an accelerated development timeline;
- Sabina expects to secure the right to use infrastructure built by Xstrata for Hackett on commercial terms which could enhance and reduce risk at our gold project at Back River.
Bruce updates corporate presentation and removes all reference to your Silver, not mentioned at all in Press Release about B2 offer.
There is something very rotten going on.