Sabina Gold & Silver has secured a construction financing package of around $520m for the Goose mine, which is part of its 100% owned Back River gold project in Nunavut, Canada.

The company has completed final documentation in this regard with Orion Mine Finance and Wheaton Precious Metals.

According to Sabina Gold & Silver, the financing package includes $225m senior secured debt facility, a gold prepay facility of $75m, gold stream arrangement worth $125m, and a private placement of the company’s shares worth $95m.

Sabina Gold & Silver is expected to invest $466m to develop the Back River project.

The Canadian firm said that it is currently working to finalise work programmes and budgets for this year with an aim to achieve first gold pour in the first quarter of 2025.

The Goose project will have a mine life of 15 years.

Sabina Gold & Silver president and CEO Bruce McLeod said: “We are proud to welcome Orion and Wheaton as significant Sabina equity holders.

“Their participation in financing the Goose Mine validates the sound exploration, engineering, environmental and community work we have done on the Project and supports our approach to development of this prolific gold district.

“We appreciate the diligence and professionalism both parties brought to the process and are satisfied that we have concluded a financing package on very acceptable terms.”

Orion Mine Finance has agreed to provide the senior secured debt facility in four equal tranches, while the gold prepay facility will be funded by the firm in two equal tranches.

As per the agreement, the delivery period will begin 30 September 2025 for a total of 15 quarters at 7,250oz of gold per quarter.

The alternative investment management firm will also subscribe for 72.7 million shares of Sabina Gold & Silver for a total price of around $75m.

On the other hand, Wheaton Precious Metals will pay an upfront payment of $125m to Sabina Gold & Silver in four equal instalments during construction of the Goose mine. The former will stand to receive 4.15% of the payable gold production from the mine.

After the delivery of 130,000oz of gold is completed, Wheaton Precious Metals will get 2.15% of the payable gold production. This will drop further to 1.5% after 200,000oz of gold is delivered to it.

The company will also subscribe for 19.4 million shares of Sabina Gold & Silver for $20m.

Wheaton Precious Metals president and CEO Randy Smallwood said: “The Goose Project in the Back River Gold District in Nunavut provides Wheaton with an exceptional opportunity to expand our portfolio into one of Canada’s strongest and fastest-growing mining jurisdictions.

“Underscored by a respectful development approach and calculated de-risking through sound environmental and social responsibility mandates, we are proud to partner with Sabina on the advancement of this project.”

Recently, Wheaton Precious Metals signed a deal worth up to $186m with Generation Mining to acquire the gold and platinum stream from the Marathon project in Canada.