Silver Dollar Signs Letter of Intent to Acquire La Joya Silver Project from First Majestic
FOR IMMEDIATE RELEASE
Silver Dollar Signs Letter of Intent to Acquire La Joya
Silver Project from First Majestic
Hosting the La Joya Main Mineralized Trend as well as the Santo Nino and
Coloradito deposits, the Property’s exploration potential is considered excellent
VANCOUVER, BC – June 19, 2020 – Silver Dollar Resources Inc. (CSE: SLV) (“Silver
Dollar” or the “Company”) is pleased to report it has signed a Letter of Intent (“LOI”) with First
Majestic Silver Corp. (“First Majestic”), wherein Silver Dollar has the option to earn an initial 80%
interest following the exercise of which it may earn an additio nal 20% for an aggregate 100%
interest in First Majestic’s La Joya Ag-Cu-Au property (the “Property”) located in the south-eastern
portion of the State of Durango in the Mexican Silver Belt (see Figure 1). The Property consists of
15 mineral concessions totalling 4,646 hectares and hosts the M ain Mineralized Trend (MMT),
Santo Nino and Coloradito deposits (see Figure 2).
Historical Estimate:
In 2013, Silvercrest Mines Inc. di sclosed a resource estimate r eported to conform to CIM
definitions for resource estimation. A qualified person of Silver Dollar has not done sufficient work
to classify this historical estimate as a current mineral resou rce and the Company is not treating
this historical resource estimate as a current mineral resource. Independent data verification and an
assessment of the mineral resource estimation methods is required to verify this historical mineral
resource.
Table 2 from NI-43-101 Technical report titled “Preliminary Eco nomic Assessment for The La Joya Property, Durango,
Mexico”, dated 5 December 2013.
Key assumptions, parameters, and methods:
• 89 holes totaling 30,085 metres (m).
• Raw assay data was composited to 2 metres, capped at 550 gpt Ag, 5.5 gpt Au 6% Cu and interpolated into a block
model using 5 m x 5 m x 5 m block size using inverse distance squared (ID2) methodology.
• Silver equivalency formula assumes Ag:Au is 50:1, Ag:Cu is 86 :1, based on US$24/oz silver, US$1200/oz gold,
US$3/lb copper and 100% metallurgical recovery.
• Mining by open-pit methods.
• Mining and process costs assumptions not specifically stated.
The Property is situated approxima tely 75 kilometres (km) direc tly southeast of the state capital
city of Durango in a prolific mineralized region with past-producing and operating mines including
Grupo Mexico’s San Martin Mine, Industrias Penoles’ Sabinas Min e, Pan American Silver’s La
Colorada Mine and First Majestic Silver’s La Parrilla and Del T oro Silver Mines. Access and
infrastructure near the Property are considered excellent with highway, rail and power lines nearby.
“La Joya is an advanced explorati on and development stage proje ct that will provide our
shareholders with tremendous lever age in a rising metals market ,” said Mike Romanik President
of Silver Dollar. “The Property’s regional targets are of particular interest as they have never been
followed up and their exploration potential remains untapped. T he transaction also gives us an
opportunity to work with First Majestic, one of the largest silver producers in Mexico.”
Under the terms of the LOI, Silver Dollar and First Majestic wi ll negotiate a definitive agreement
within the next 60 days. To exercise its first option and acqui re an 80% interest in the La Joya
property, Silver Dollar will pay First Majestic $1.3 million cash over four years, issue shares equal
to 19.9% of Silver Dollar’s the n-outstanding common shares within one year, incur $1 million of
exploration expenditures within the first five years, and grant First Majestic a 2% net smelter
returns royalty. If Silver Dolla r incurs the exploration expend itures within the first three years;
however, First Majestic will waive the remaining $600,000 – or nearly half – of the cash option
payments.
Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%
interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the
first 80% interest and issuing to First Majestic additional sha res equal to 5% of Silver Dollar’s
then-outstanding common shares within five years. If Silver Dol lar does not provide such notice,
Silver Dollar and First Majestic will enter into a joint venture.
Garry Clark, P.Geo., of Clark Exploration Consulting, is the "Q ualified Person" as defined in NI
43-101, who has reviewed and approved the technical content in this press release.
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 is now trading on the Canadian Securities
Exchange under the symbol "SLV" . Silver Dollar’s initial explor ation projects are the Pakwash
Lake and the Longlegged Lake properties that are both located in the re-energized Red Lake Mining
Division of Ontario, Canada. The Company has an aggressive grow th strategy and is actively
reviewing potential acquisition targets in mining-friendly jurisdictions, internationally.
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.
Suite 200, 551 Howe Street,
Vancouver, BC V6C 2C2
Forward-Looking Statements:
This news release includes certa in forward-looking statements a nd 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 future capital
expenditures, anticipated conte nt, commencement, and cost of ex ploration programs in respect of the Company's
projects and mineral properties, anticipated exploration progra m results from exploration activities, resources and/or
reserves on the Company's projects and mineral properties, and the anticipated business plans and timing of future
activities of the Company, are forward-looking statements. Alth ough the Company believes that such statements are
reasonable, it can give no assura nce that such expectations wil l prove to be correct. Often, but not always, forward
looking information can be identified by words such as "pro for ma", "plans", "expects", "will", "may", "should",
"budget", "scheduled", "estimates", "forecasts", "intends", "an ticipates", "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. In making the forward-looking statements in this news release, the
Company has applied several material assumptions, including without limitation, that market fundamentals will result
in sustained precious and base metals demand and prices, the receipt of any necessary permits, licenses and regulatory
approvals in connection with the future exploration of the Company's properties, that the COVID-19 global pandemic
will not affect the ability of the Company to conduct explorati on, the availability of financing on suitable terms, and
the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, unc ertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from 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 tim ing of future activities of the Company, including the
Company's options to acquire mineral properties, the proposed e xpenditures 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, permits or financing, changes in laws, regulations and policies affecting mining operations,
the Company's limited operating history, currency fluctuations, title disputes or claims, and environmental issues and
liabilities.
Readers are cautioned not to pl ace undue reliance on forward-lo oking statements. The Company undertakes no
obligation to update any of the forward-looking statements in this news release except as otherwise required by law.