- Eric Sprott is set to acquire a further interest of approximately C$6.47 million in Silver Dollar Resources (SLV) as part of a larger private placement
- The company intends to issue up to 7.5 million common shares at a price of $1.40 each, 4.6 million of which will be purchased by Eric
- First Majestic Silver has also agreed to subscribe for 500,000 shares for a total price of $700,000
- The proceeds will be used to fund exploration and development work at the company’s projects in Canada and Mexico
- Silver Dollar Resources (SLV) is currently down 0.55 per cent and is trading at $1.81 per share
Billionaire Eric Sprott is set to acquire a further C$6.47 million interest in Silver Dollar Resources (SLV) as part of a private placement.
Under the terms of the placement, the Vancouver-based company intends to issue up to 7.5 million common shares at a price of $1.40 each, for gross proceeds of $10.5 million.
Eric has indicated his intention to purchase 4,621,241 for a total of $6,469,737, which will results in the Canadian precious metals investor holding approximately 19.9 per cent of Silver Dollar’s issued and outstanding securities.
TSX-listed First Majestic Silver has also agreed to acquire 500,000 shares for a total of $700,000, which will result in the company owning roughly 16.4 per cent of Silver Dollar’s capital.
All of the securities issued as part of the private placement will have a mandatory holding period of four months from the date of issuance.
The proceeds will be used to fund exploration and development activities at Silver Dollar’s projects in Red Lake, Ontario and Durango, Mexico.
Mike Romanik, President of Silver Dollar Resources, said he is very pleased that Eric has elected to increase his holding in the company.
“We also view First Majestic’s participation in this offering as further validation of the exploration and development potential of the La Joya Silver Project,” he added.
Silver Dollar signed a definitive agreement with First Majestic Silver 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 down 0.55 per cent to $1.81 per share at 3:16pm EDT.