Participants include Eric Sprott and First Majestic Silver Corp.
Vancouver, British Columbia–(Newsfile Corp. – September 17, 2020) – Silver Dollar Resources Inc. (CSE: SLV) (“Silver Dollar” or the “Company”) has completed its previously announced non-brokered private placement of 7,500,000 common shares at a price of $1.40 per share to raise $10.5 million in gross proceeds (the “Offering”).
Mr. Eric Sprott subscribed for 4,621,241 shares or $6,469,737 of the Offering. This investment results in Mr. Sprott holding approximately 19.9 percent of Silver Dollar’s issued and outstanding common shares calculated on a partially diluted basis.
First Majestic Silver Corp. (“First Majestic”) subscribed for 500,000 shares or $700,000 of the Offering. This investment results in First Majestic holding approximately 16.4 percent of Silver Dollar’s issued and outstanding common shares.
“We would like to thank Eric Sprott, First Majestic, and our existing shareholders for their support and welcome several new investors,” said Mike Romanik, president of Silver Dollar. “This funding positions us to pursue our explorations programs at both our Red Lake properties and hit the ground running in Mexico where we have already identified numerous priority drill targets at the La Joya Silver Project.”
The Company paid finders’ fees of $173,191 and 10,150 shares at $1.40 per share in respect of the Offering. All securities issued pursuant to this Offering will have a hold period expiring four months after the closing date.
The net proceeds of this financing will be used to fund the Company’s exploration and development work on its projects in Red Lake, Ontario, Canada and Durango, Mexico, and for general working capital purposes.
Silver Dollar relied on subsections 5.5(c) and 5.7(1)(a) of Multilateral Instrument 61-101 to exempt the offering from the requirements for a formal valuation and minority shareholder approval. To the Company’s knowledge, neither it nor the purchasers have knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
About Silver Dollar Resources Inc.
Silver Dollar Resources Inc. is a mineral exploration company focused on creating shareholder value by finding and developing economic precious and base metal deposits. Having completed its initial public offering in May 2020, the Company trades on the Canadian Securities Exchange under the symbol “SLV”. Silver Dollar’s projects are located in two of the prolific mining jurisdictions in the world and include the advanced exploration/development stage La Joya Silver Project in Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake Mining District of Ontario, Canada. The Company has an aggressive growth strategy and is actively reviewing projects in mining-friendly jurisdictions internationally for potential acquisition.
For additional information, you can visit our website by clicking here, download our latest presentation by clicking here and you can follow us on Twitter by clicking here.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik,
President, CEO & Director
Direct line: (204) 724-0613
Email: [email protected]
Silver Dollar Resources Inc.
108 – 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9
Original Article: https://www.newsfilecorp.com/release/64045/
