SABINA SILVER CORPORATION

Sabina shares jump on $100m Nunavut deal with Xstrata

Canada's Sabina Gold & Silver Corp said on Thursday it would sell its Hackett River property and certain claims on the Wishbone Greenstone Belt in Nunavut, Canada to Xstrata Zinc Canada for C$50m in cash and a silver production royalty, lifting its shares almost 5% in early Toronto trade.

In addition Xstrata has agreed to incur not less than $50m on exploration and other expenditures on the properties over a four year period. The transaction could take up to six months to complete and will position Sabina as purely a precious metal player.