June 2, 2011 / 2:05 PM / in 7 years

UPDATE 1-Sabina Gold to sell some Nunavut properties to Xstrata

* To sell certain claims on Wishbone Greenstone belt

* Xstrata to pay C$50 mln in cash

* Deal expected to close in 6 months (Follows alerts)

June 2 (Reuters) - Canada’s Sabina Gold & Silver Corp said it would sell its Hackett River property and certain claims on the Wishbone Greenstone belt in Nunavut, Canada to Xstrata Zinc Canada .

As part of the deal, Xstrata will pay C$50 million ($51.1 million) in cash and Sabina will reserve a silver production royalty equal to 22.5 percent of the first 190 million ounces of payable silver from the resource at Hackett River.

The precious metals explorer said Xstrata, the world’s fourth-largest copper producer, will spend close to C$50 million on exploration on the properties over a four-year period.

The transaction could take up to six months for completion, the company said in a statement.

Shares of Sabina rose 10 Canadian cents to C$6.84 in morning trade on Thursday on the Toronto Stock Exchange. ($1 = 0.978 Canadian dollars) (Reporting by Amruta Sabnis in Bangalore; Editing by Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below