Shares in Sabina Gold & Silver (TSX: SBB; OTC: SGSVF) jumped almost 4% on Wednesday after the Canadian miner formally committed to building the C$610 million ($463m) Goose gold mine in Nunavut.
Construction at the site, located in the Back River gold district, is planned to fully start in 2023, with first gold production expected in 2025.
The Vancouver-based miner has already completed pre-development activities, while major equipment and materials required for construction have been either procured, delivered or are in transit, it said.
“This is a milestone decision for the company,” CEO Bruce McLeod said in the statement. “We are fortunate that our strategy of pre-planning and accelerating procurement efforts has reduced our exposure to inflationary impacts and supply chain issues, and we are sufficiently funded for construction.”
Sabina earlier this year raised about C$800 million ($607m) in project financing, which allowed for significant procurement, engineering and civil work to be completed at the mine site and port.
Of the C$610 million capital expenditure estimated, about C$218 million was identified as direct equipment and materials purchases.
The miner has submitted a regulatory package to the Nunavut Planning Commission and the Nunavut Impact Review Board to build the Back River Alternate Energy Center.
If approved, the company will install up to 13 wind turbines, each with a power capacity of up to 4.5 MW, a solar panel array with a power capacity of 5 MW and a battery storage system with a capacity of 50 MWh.
The company says the centre will significantly reduce project greenhouse gases emissions, traffic on the winter ice road, and the number of ships required.
Shares in Sabina were trading last at C$1.03 in Toronto, giving the company a market capitalization of about C$565 million ($429m).