Silver Dollar Arranges $10.5 Million Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
FOR IMMEDIATE RELEASE
Silver Dollar Arranges $10.5 Million Non-Brokered
Private Placement
Participants include Eric Sprott and First Majestic Silver Corp.
VANCOUVER, BC – September 2, 2020 – Silver Dollar Resources Inc. (CSE: SLV) (“Silver
Dollar” or the “Company”) has arranged a non-brokered pri vate placement of up to 7,500,0 00
common shares at a price of $1. 40 per share to raise up to $10. 5 million in gross proceeds (the
“Offering”).
Mr. Eric Sprott has agreed to subscribe for 4,621,241 shares or $6,469,737 of the Offering.
Assuming the Offering is fully su bscribed, this investment will result in Mr. Sprott holding
approximately 19.9 percent of Silver Dollar’s issued and outstanding common shares upon closing.
First Majestic Silver Corp. (“First Majestic”) has agreed to su bscribe for 500,000 shares or
$700,000 of the Offering. Assuming the Offering is fully subscribed, this investment will result in
First Majestic holding approxima tely 16.4 percent of Silver Dol lar’s issued and outstanding
common shares upon closing.
“We are very pleased that Eric Sprott has chosen to increase hi s ownership stake in the Company
to 19.9%," said Mike Romanik, president of Silver Dollar. “We a lso view First Majestic’s
participation in this Offering as further validation of the exp loration and development potential of
the La Joya Silver Project.”
The Company may pay a finder’s fee of up to 7% in cash or shares to eligible finders. 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 will rely on subs ections 5.5(c) and 5.7(1)(a) of Multilateral Instrument 61-101 to
exempt the offering from the requirements for a formal valuatio n and minority shareholder
approval. To the Company’s knowledge, neither it nor the purcha sers 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 f ocused 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 o f the prolific mining jurisdictions
in the world and include the adva nced exploration/development s tage La Joya Silver Project in
Durango, Mexico, and the discovery-stage Pakwash Lake and the L onglegged Lake properties in
the Red Lake Mining District of Ontario, Canada. The Company has an aggressive growth strategy
and is actively reviewing projec ts in mining-friendly jurisdict ions internationally for potential
acquisition.
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
This news release, provided pursuant to applicable Canadian requirements, is not for distribution to United States news
services or for dissemination in the United States, and does no t constitute an offer of the securities described herein.
The offering in question has not been registered under the Unit ed States Securities Act of 1933, as amended, or any
state securities laws, and the securities sold in such offering may not be offered or sold in the United States or to U.S.
Persons absent registration or applicable exemption from registration requirements.