SABINA SILVER ANNOUNCES $30 MILLION FINANCING
Vancouver, B.C. - March 13, 2007 - SABINA SILVER CORPORATION (SBB: TSX-V) ("Sabina") is pleased to announce that it has entered into an agreement with Research Capital Corporation to act as the lead underwriter of a syndicate of underwriters including BMO Capital Markets Corp., and Pacific International Securities Inc. (the "Underwriters") for an offering, on a bought deal private placement basis, of 5,000,000 units of securities (the "Units") at a price of C$3.00 per Unit for gross proceeds of C$15,000,000. Additionally, the Company has granted the underwriters an option to purchase up to an additional 5,000,000 Units exercisable in whole or in part at any time until closing for total potential proceeds of up to C$30,000,000 (the "Offering").
The Units will be purchased for resale to qualified investors in such provinces of Canada as the underwriters and Sabina may agree upon. Each Unit will be comprised of one common share of Sabina (each a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"), with each full Warrant entitling the holder thereof to purchase one Common Share at a price of $3.60 for a period of 36 months following the closing of the Offering.
In consideration for their services, the underwriters will receive a cash commission equal to 5% of the gross proceeds from the Offering and broker warrants exercisable into a number of Common Shares equal to 5% of the number of Units sold. Each broker warrant will entitle the holder to acquire one Common Share at any time within twenty-four (24) months from the closing of the Offering at a price equal to the Unit issue price.
Closing is expected on or about March 29th, 2007. The net proceeds from the sale of the Units will be used for completing pre-feasibility and bankable feasibility assessment of Sabina\'s 100% owned Hackett River Project.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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.
Sabina Silver Corporation is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District, and several projects in the Red Lake gold camp. The proceeds from the private placement will be used to further advance Sabina\'s Hackett River Project towards permitting, feasibility and ultimately production, all subject to rigorous and ongoing engineering and environmental review, and for general corporate purposes.
ON BEHALF OF THE BOARD OF DIRECTORS
SABINA SILVER CORPORATION
Abraham P. Drost, M.Sc., P.Geo,
President/Director
The foregoing securities have not been, nor are there any current plans to register said securities under the United States Securities Act of 1933, as amended, and these securities may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does 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 where such offer, solicitation or sale would be unlawful.
All statements in this discussion, other than statements of historical facts, that address Future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S.
Sabina Silver Corporation
401-1113 Jade Court
Thunder Bay, Ontario
Canada P7B-6M7
Tel 807-766-1799
Fax 807-345-0284
http://www.sabinasilver.com
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