Silver Dollar Closes Financing Led by Strategic Investor and Largest Shareholder Eric Sprott

Rhea-AI Summary

Silver Dollar Resources has completed a non-brokered private placement financing raising $1.5 million through the issuance of 6 million units at $0.25 each. Strategic investor Eric Sprott contributed $750,000, now holding approximately 19.8% of Silver Dollar's shares on a partially diluted basis. Each unit includes one common share and a half warrant exercisable at $0.40 for two years. The proceeds will fund initial drilling at the recently acquired Ranger-Page Silver-Lead-Zinc Project in Idaho's Silver Valley, a drill-ready project encompassing six historic mines with access to infrastructure and skilled workforce.

Positive

• Secured $1.5 million in financing
• Major strategic investor Eric Sprott increased position to 19.8% ownership
• Project located in established mining district with existing infrastructure

Negative

• Share dilution through new unit issuance
• Warrants may cause additional future dilution if exercised

Use of proceeds will include fall drilling at the recently acquired Ranger-Page Silver-Lead-Zinc Project in Idaho's Coeur d'Alene Mining District

Vancouver, British Columbia--(Newsfile Corp. - October 29, 2024) - Silver Dollar Resources Inc. (CSE: SLV) (OTCQX: SLVDF) (FSE: 4YW) ("Silver Dollar" or the "Company") has completed the previously announced non-brokered private placement financing that raised gross proceeds of $1,500,000 (the "Offering").

The Offering consisted of 6,000,000 units priced at $0.25 each. The units are comprised of one common share and one-half of a non-transferable share purchase warrant with each full warrant entitling the holder to purchase one additional common share of the Company at a price of $0.40 per share for two years from the closing date of the Offering.

Mr. Eric Sprott subscribed for 3,000,000 units or $750,000 of the Offering. This investment results in Mr. Sprott holding approximately 19.8% percent of Silver Dollar's issued and outstanding common shares calculated on a partially diluted basis.

The Company paid finders' fees of $22,400 and 89,600 finders' warrants on a portion of the Offering proceeds. The finders' warrants entitle the holder to purchase one common share of the Company at a price of $0.40 for twenty-four months from the closing date. All securities issued pursuant to this Offering will have a hold period expiring on March 2, 2025.

The Company will use the net proceeds of the Offering to fund its initial drilling campaign at the recently acquired Ranger-Page Ag-Pb-Zn Project in Idaho's Silver Valley and for general working capital purposes.

Silver Dollar relied on subsections 5.5(b) 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 the Ranger-Page Project

Ranger-Page is a drill-ready project in a world-class silver district. The land package covers six historic mines and is ideally situated near Interstate 90 with year-round access to power, water, local infrastructure and a workforce in the Silver Valley skilled in exploration and mining. The primary target areas are up and down plunge from historic underground mining, along strike where ground induced polarization (IP) surveys identify anomalies, and where surface trenching identified near surface mineralization. Additional exploration targets have also been identified away from historic mine infrastructure, using soil geochemical data, mapping, and ground IP survey data.

Figure 1: Ranger-Page claim groups, underground mine workings, and new target areas.

To view an enhanced version of this graphic, please visit:
https://silverdollarresources.com/images/Ranger-Page/Ranger-Page_Claims-Targets.jpg

About Silver Dollar Resources Inc.

Silver Dollar is a dynamic mineral exploration company focused on two of North America's premier mining regions: Idaho's prolific Silver Valley and the Durango-Zacatecas silver-gold belt. Our portfolio includes the advanced-stage Ranger-Page and La Joya projects, along with the early-stage Nora project. The Company's financial backers include renowned mining investor Eric Sprott, our largest shareholder. Silver Dollar's management team is committed to an aggressive growth strategy and is actively reviewing potential acquisitions with a focus on drill-ready projects in mining-friendly jurisdictions.

For additional information, you can download our latest presentation here and follow us on X here.

ON BEHALF OF THE BOARD

Signed "Michael Romanik"

Michael Romanik,
President, CEO & Director
Silver Dollar Resources Inc.
Direct line: (204) 724-0613
Email: mike@silverdollarresources.com
179 - 2945 Jacklin Road, Suite 416
Victoria, BC, V9B 6J9

Forward-Looking Statements:

This news release may contain "forward-looking statements." Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228199

FAQ

How much did Silver Dollar Resources (SLVDF) raise in their latest financing?

Silver Dollar Resources raised gross proceeds of $1.5 million through a non-brokered private placement financing.

What is Eric Sprott's ownership percentage in Silver Dollar Resources (SLVDF) after the financing?

Eric Sprott holds approximately 19.8% of Silver Dollar's issued and outstanding common shares on a partially diluted basis.

What is the exercise price and expiry of the warrants issued in Silver Dollar's (SLVDF) October 2024 financing?

The warrants have an exercise price of $0.40 per share and expire two years from the closing date of the offering.

What will Silver Dollar Resources (SLVDF) use the financing proceeds for?

The proceeds will fund the initial drilling campaign at the Ranger-Page Silver-Lead-Zinc Project in Idaho's Silver Valley and general working capital purposes.