Silver Sands Closes Over-Subscribed Private Placement Including Strategic Investment by Eric Sprott
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
Silver Sands Closes Over-Subscribed Private Placement Including
Strategic Investment by Eric Sprott
Vancouver, British Columbia, August 24th , 2020: further to its news release dated August 10th,
2020, Silver Sands Resources Corp. (the “Company” or “Silver Sands”) (CSE: SAND) is pleased to
announce that it has closed its over-subscribed, non-brokered private placement for aggregate
gross proceeds of C$2,750,000 (the “Private Placement”) through the issuance of up to
11,000,000 units of the Company (each a “Unit”) at a price of C$0.25 per Unit. Each Unit consists
of one common share in the capital of the Company (each a "Share") and one half of one common
share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to
acquire one share at a price of C$0.30 per share for a period of 24 months following the date of
issuance. The Warrants are subject to an acceleration right that allows the Company to give
notice of an earlier expiry date if the Company’s share price on the CSE (or such other stock
exchange the Shares may be trading on) is equal to or greater than C$0.50 for a period of 10
consecutive trading days.
The Company has paid 7% Cash Finders’ fees totaling $88,725 and issued 354,900 Broker
Warrants which have the same terms as the subscribers’ warrants described above.
Proceeds of the Private Placement will be used for exploration expenditures on the Project, for
accounts payable and ongoing general working capital requirements.
The securities issued in connection with the Private Placement are subject to a four month hold
period as required by applicable securities laws and the policies of the Canadian Securities
Exchange.
Early Warning Disclosure
Pursuant to the Private Placement, 2176423 Ontario Ltd., a company beneficially owned and
controlled by Eric Sprott, acquired ownership of 4,000,000 Units at a purchase price of
$1,000,000. Prior to the Private Placement, Northbound, a private corporation of which Mr.
Sprott has a minority interest, held 600,000 Shares and 2176423 Ontario Ltd., held 3,000,000
Shares and 1,500,000 Warrants representing an aggregate of approximately 8.44% of the issued
and outstanding shares on a non-diluted basis and approximately 11.55% on a partially diluted
basis assuming exercise of the Warrants.
After closing of the Private Placement, 2176423 Ontario Ltd. and such other private corporation
(in the case of the Shares) hold 7,600,000 Shares and 3,500,000 Warrants representing
approximately 14.17% of the issued and outstanding Shares on a non -diluted basis and
approximately 19.42% on a partially diluted basis assuming exercise of the Warrants and no other
Shares are issued.
The Units were acquired by Mr. Sprott through 2176423 Ontario Ltd., for investment purposes.
Mr. Sprott has a long-term view of its investment and may acquire additional securities of the
Company either on the open market or through private acquisitions or sell securities of the
Company either on the open market or through private dispositions in the future depending
on market conditions, reformulation of plans and/or other relevant factors.
A copy of the Early Warning Report will appear on www.SEDAR.com under Silver Sand's profile
and may also be obtained by contacting Mr. Sprott's office at (416) 945-3294 (200 Bay Street,
Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Silver Sands Resources Corp.
Silver Sands is a well-financed, Canadian-based company engaged in the business of mineral
exploration and the acquisition of mineral property assets in mining -friendly jurisdictions. Its
objective is to locate and develop economic precious and base metal properties of merit. The
company has signed a definitive agreement with Mirasol Resources to acquire a 100-per-cent
interest in the 73,411-hectare Virginia silver project, its key asset. There is an indicated mineral
resource of 11.9 million ounces of silver at 310 grams per tonne silver and an inferred resource
of 3.1 million ounces of silver at 207 g/t Ag in 2016.
On Behalf of the Board of Directors
Keith Anderson
Chief Executive Officer, Director
For further information, please contact:
Keith Anderson
Chief Executive Officer, Director (604) 786-7774
SILVER SANDS RESOURCES CORP.
Suite 830 – 1100 Melville Street
Vancouver, British Columbia V6E 4A6
www.silversandscorp.com
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.
Forward-Looking Statements:
This news release includes certain forward-looking statements and forward-looking information
(collectively, “forward-looking statements”) within the meaning of applicable Canadian securities
legislation. All statements, other than statements of historical fact, included herein including, without
limitation, statements regarding the timing and payment the Exercise Price, future capital expenditures,
anticipated content, commencement, and cost of exploration programs in respect of the Project,
anticipated exploration program results from exploration activities, resources and/or reserves on the
Project and the anticipated business plans and timing of future activities of the Company, are forward-
looking statements. Although the Company believes that such statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Often, but not always, forward looking
information can be identified by words such as “pro forma”, “plans”, “expects”, “will”, “may”, “should”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or
variations of such words including negative variations thereof, and phrases that refer to certain actions,
events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to differ materially f rom any future results,
performance or achievements expressed or implied by the forward-looking statements. Such risks and
other factors include, among others, statements as to the anticipated business plans and timing of future
activities of the Company, including the Company’s option to acquire the Project, the proposed
expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to
fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including
of the CSE), permits or financing, changes in laws, regulations and policies affecting mining operations,
the Company’s limited operating history, currency fluctuations, title disputes or claims, environmental
issues and liabilities, as well as those factors discussed under the heading “Risk Factors” in the Company’s
prospectus dated August 30, 2019 and other filings of the Company with the Canadian Securities
Authorities, copies of which can be found under the Company’s profile on the SEDAR website at
www.sedar.com.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company
undertakes no obligation to update any of the forward -looking statements in this presentation or
incorporated by reference herein, except as otherwise required by law.