- Sabre Gold Mines Corp. (TSGLD) has sold the 1.0 per cent net smelter returns royalty it holds on the Kerr-Addison Mine claims for cash proceeds of US$7 million
- As a result of the sale, Sabre Gold terminated the previously-announced proposed sale of the GC Royalty and will pay the agreed-upon break fee of US$500,000.
- The company intends to use the net proceeds of the sale of this non-core asset to improve the viability of its key assets
- Sabre Gold Mines Corp. is a diversified, multi-asset near-term gold producer in North America with operations in Arizona, United States, and Yukon, Canada
- Sabre Gold Mines Corp. opened trading at $0.17
Sabre Gold Mines Corp. (TSGLD) has sold the 1.0 per cent net smelter returns royalty it holds on the Kerr-Addison Mine claims.
The company sold the NSR it holds in the Kerr-Addison Mine claims owned by Gold Candle Ltd. for cash proceeds of US$7 million.
As a result of the sale, Sabre Gold terminated the previously-announced proposed sale of the GC Royalty and will pay the agreed-upon break fee of US$500,000.
The company intends to use the net proceeds of the sale of this non-core asset to improve the viability of its key assets.
Accordingly, the company will buy back two-thirds of the 4.5 per cent gross production royalty on the company’s Copperstone Mine, settle US$2 million of the company’s outstanding debt and add the remaining cash balance to the company’s treasury.
“This cash sale allows the company to achieve its stated objectives of improving our balance sheet while also improving the projected economics of the Copperstone Mine,” noted CEO and President Andrew Elinesky.
“Along with our recently closed financing and the sale of another minor non-core asset, we are in a much stronger position to accelerate the development of our fully permitted asset in Arizona,” he added.
In addition, the company anticipates that its current payable debt will be extended by 18 months from the current due date of December 31, 2023.
Sabre Gold Mines Corp. is a diversified, multi-asset near-term gold producer in North America which holds 100-per-cent ownership of both the fully licensed and permitted Copperstone gold mine located in Arizona, United States, and the Brewery Creek gold mine located in Yukon, Canada, both of which are former producers.
Sabre Gold Mines Corp. opened trading at $0.17.
