Silver Dollar Announces Closing of $5.9 Million Brokered Financing, with Participation by Eric Sprott

Executive Summary

• Silver Dollar Resources closed a brokered private placement of 16,857,150 units at $0.35 per unit, generating aggregate gross proceeds of $5,900,000.
• Proceeds are earmarked for exploration on the La Joya (Mexico) and Ranger‑Page (Idaho) projects and for general working capital.
• Existing insider Eric Sprott purchased 2,857,150 units, increasing his holdings to 12,878,391 common shares and 4,356,150 warrants (≈17.5% non‑diluted, 22.1% partially diluted).

Key Details

• Offering Structure: Each unit = 1 common share + 1 warrant (exercise price $0.45, expires Oct 3 2028).
• Units Sold:
• 14,000,000 “LIFE Units” sold under the Listed Issuer Financing Exemption – free‑trading immediately.
• 2,857,150 “Accredited Investor Units” sold under accredited investor exemption – restricted until Feb 4 2026.
• Gross Proceeds: $5,900,000 (price $0.35 per unit).
• Commission & Warrants to Agent: Cash commission of $347,343.15 paid to Research Capital Corp.; 992,409 broker warrants issued (exercise price $0.35, expire Oct 3 2028).
• Use of Proceeds: Exploration activities on La Joya Silver Project (Durango, Mexico) and Ranger‑Page Ag‑Pb‑Zn Project (Idaho), plus general working capital.
• Related‑Party Transaction: Eric Sprott’s purchase qualifies as a related‑party transaction; exemptions from minority shareholder approval were relied upon because the fair market value and consideration are each < 25% of market cap.
• Ownership Impact: Post‑offering, Mr. Sprott holds ~17.5% of outstanding shares on a non‑diluted basis and ~22.1% on a partially diluted basis (assuming warrant exercise).

Notable Quotes

(No direct quotes were provided in the release.)