- Silver Dollar Resources (SLV) has raised C$10.5 million in a private placement to fund exploration work at its project in Canada and Mexico
- The company issued 7.5 million common shares at a price of $1.40 each
- First Majestic Silver and Eric Sprott both acquired a package of shares for $700,000 and roughly $6.47 million, respectively
- The proceeds will be used to fund a number of different exploration programs, including at the company’s La Joya Silver Project, which is under option from First Majestic
- Silver Dollar Resources (SLV) is currently up 1.18 per cent and is trading at $1.71 per share
Silver Dollar Resources (SLV) has raised C$10.5 million in a private placement to fund exploration work at its project in Canada and Mexico.
Under the terms of the placement, which was announced on September 2, 2020, the Vancouver-based company issued a total of 7.5 million common shares at a price of $1.40 each.
This included an investment worth roughly $6.47 million from Canadian precious metals champion Eric Sprott, who subscribed for 4,621,241 shares. As such, Eric now holds approximately 19.9 per cent of Silver Dollar’s issued and outstanding securities on a partially diluted basis.
Fellow silver company First Majestic Silver also participated in the placement to the value of $700,000, or 500,000 shares. With the transaction now complete, First Majestic holds roughly 16.4 per cent of Silver Dollar’s total number of securities.
In connection with the financing, a finder’s fee was issued to certain parties worth a total of $173,191 and 10,150 shares at a price of $1.40 each.
All of the securities issued under the placement are subject to a mandatory holding period of four months.
Mike Romanik, President of Silver Dollar Resources, thanked the company’s existing shareholders, along with Eric and First Majestic Silver, for their support.
“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,” he said.
Silver Dollar signed a definitive agreement with First Majestic to acquire an 80 per cent interest in the La Joya Silver Project on August 10, 2020, which lies roughly 75 kilometres southeast of Durango’s capital in a prolific region of mineralisation.
Silver Dollar Resources (SLV) is currently up 1.18 per cent to $1.71 per share at 2:35pm EDT.