Sabina Gold & Silver (SBB.TO), a Canadian exploration company, said on Thursday it would sell its Hackett River property and part of its Wishbone exploration property in Canada's northern Nunavut territory to a unit of diversified miner Xstrata (XTA.L). Vancouver-based Sabina said the deal will allow it to focus solely on developing its precious metal assets and help boost its valuation. As part of the deal, Xstrata Zinc 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 properties and 12.5 percent of all payable silver from the properties thereafter. "This transaction solidifies Sabina's precious metals focus and poises the company for a potential market re-rating as a gold company," said Sabina's Chief Executive Tony Walsh in a statement.
Source
