Sabina Silver* (SBB : TSX-V : $1.88), Net Change: 0.18, % Change: 10.59%, Volume: 1,448,309
Joining the racket at Hackett.
Shares of Sabina got another boost on Friday after Silver Wheaton (SLW) announced that they
have agreed to acquire by way of private placement 7,800,000 units of Sabina Silver at a price of $1.65 per unit for a total
purchase price of $12,870,000. Each unit will be comprised of one common share and one-half of one common share purchase
warrant. The warrants are good for four years and are exercisable at $2.75. The proceeds of the offering, which is expected to
close on December 21, 2006, are primarily intended for use on further development of the Hackett River Project. In addition,
Silver Wheaton will acquire a right of first refusal over any silver stream sale by Sabina from its existing projects. As a result of
this transaction, Silver Wheaton will own 14.2% of the outstanding shares of Sabina on an undiluted basis, and 19.9% after
giving effect to the exercise of the warrants held by Silver Wheaton. Sabina's 100%-owed Hackett River Project has an
estimated indicated mineral resource of 47 million tonnes grading 4.67% zinc and 4.37 ounces of silver per tonne.
