Sabre Gold Mines (TSX: SGLD) is receiving a much needed cash infusion after the sale of its Golden Predator Mining subsidiary to that of Victoria Gold Corp (TSX: VGCX).
The transaction, valued at $13.5 million, will see Victoria Gold acquire the Brewery Creek property, as well as the Gold Dome and Grew Creek exploration properties. Brewery Creek is a formerly producing heap leach project in the Yukon, with a mineral resource of 1.4 million ounces of measured and indicated gold at 1.03 g/t, and 1.02 million inferred ounces of gold at 0.88 g/t.
Brewery Creek was also the subject of a 2022 preliminary economic assessment, which assigned a net present value (5%) of US$112 million after taxes at a gold price of $1,700 per ounce. The assessment estimated a mine life of 8 years at an average AISC of US$966 per ounce.
The transaction will see Victoria Gold pay a total of $13.5 million for the assets, all of which are located in the Yukon. Initial consideration is to consist of an initial $1.5 million in cash and an additional $7.0 million, payable in cash or shares at Victoria Gold’s discretion, upon closing. A further $3.0 million is to be paid on the 12 month anniversary of closing, of which up to $2.5 million may be in shares, and a final $2.0 million, of which up to $1.5 million may be in shares, will be paid on the 24 month anniversary of closing.
The transaction closed on September 14. Notably, Golden Predator had non-capital losses of $44 million, for which Victoria Gold expects certain tax-related synergies.
Sabre Gold obtained the Golden Predator subsidiary via a business combination in 2021, which saw Golden Predator and Arizona Gold come together to form Sabre Gold. At the time, the duo stated the merger would create a diversified near-term gold producer that would develop the Copperstone mine in Arizona followed by the Brewery Creek mine in the Yukon. Following the close of the transaction, Sabre Gold will now be solely focused on the Copperstone project.
Sabre Gold last traded at $0.13 on the TSX, with a market capitalization of just $9.3 million.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.