Silver Dollar closes $5.9-million private placement

Executive Summary

• Silver Dollar Resources Inc. closed a brokered private placement raising $5.9 million at $0.35 per unit.
• The offering was led by Research Capital Corp.; units consisted of one common share plus one warrant (exercise price $0.45, expires 3 Oct 2028).
• Investor Eric Sprott purchased 2,857,150 units for $1,000,002.50, increasing his ownership to ~17.5 % non‑diluted and 22.1 % partially diluted.

Key Details

• Gross proceeds: $5,900,000 (aggregate).
• Unit composition: 1 common share + 1 common share purchase warrant per unit.
• Warrant terms: Exercise price $0.45 per share; exercisable until 3 Oct 2028.
• Units sold: 14,000,000 units under the listed issuer financing exemption (multiple Canadian provinces and U.S.) plus 2,857,150 units to accredited investors in Ontario.
• Broker compensation: Cash commission of $347,343.15 paid to Research Capital Corp.; issuance of 992,409 broker warrants (each for one common share at $0.35, exercisable until 3 Oct 2028).
• Use of proceeds: Exploration on the La Joya project (Durango, Mexico) and Ranger‑Page project (Idaho’s Silver Valley), plus general working capital.
• Eric Sprott participation: Acquired 2,857,150 units for $1,000,002.50 through 2176423 Ontario Ltd.; prior holdings of 10,021,241 common shares & 1.5 M warrants; post‑offering holdings of 12,878,391 common shares & 4,356,150 warrants.
• Ownership percentages post‑offering: ~17.5 % non‑diluted, ~22.1 % partially diluted (assuming warrant exercise).
• Related‑party transaction: Covered by MI 61‑101 exemptions; fair market value and consideration each below 25 % of market cap, so no minority shareholder approval required.
• Lock‑up: Accredited investor units restricted from trading until 4 Feb 2026 unless permitted by securities legislation.

Notable Quotes

(No direct quotes were provided in the release.)