The Property, located in the south-eastern portion of the
Pursuant to an option agreement (the 'Option Agreement') dated
In order to exercise the First Option, the Company was required to:
pay First Majestic a total of
In accordance with the Option Agreement, since the Company incurred
In order to exercise the Second Option, the Company was required to: provide notice to First Majestic within 30 days of exercising the First Option and on or before the 60-month anniversary of the Effective Date and within 10 business days of exercising the Second Option, issue to First Majestic, such number of Shares as is equal to 5% of the then issued and outstanding Shares of the Company post-issuance. The Company fulfilled this obligation by issuing to First Majestic an aggregate of 2,205,118 Shares on
In addition, pursuant to the Option Agreement, the Property is subject to a 2% net smelter returns royalty interest in all minerals produced from the Property.
A copy of the Option Agreement, the Amending Agreement and the Company's news release dated
Early Warning Disclosure
First Majestic is providing this disclosure pursuant to the early warning reporting provisions of Canadian securities legislation.
First Majestic has acquired ownership and control of 2,205,118 Shares of Silver Dollar and now holds 8,051,519 Shares representing approximately 18.2% of the outstanding Shares. Prior to the issuance of the 2,205,118 Shares, First Majestic held 5,846,401 Shares of Silver Dollar or approximately 13.9% of the outstanding Shares. Accordingly, First Majestic's ownership interest has increased by approximately 4.3%.
The Shares were acquired in exchange for the sale of the La Joya Property. Depending on market conditions, general economic and industry conditions and subject to certain contractual resale restrictions, Silver Dollar's business and financial condition and/or other relevant factors, First Majestic may increase or decrease its beneficial ownership of securities of Silver Dollar through market transactions, private agreements or otherwise, in the future.
Silver Dollar is located at
About the
The La Joya Property is situated approximately 75 kilometres (km) directly southeast of the state capital city of Durango in a prolific mineralized region with past-producing and operating mines including
The Company previously reported analytical results for its Phase I drill program, which consisted of 2,424 metres completed over 11 holes and for its Phase II program, which consisted of 3,428 metres of drilling completed over 17 holes.
Highlights from the Company's exploration drilling include the discovery of the Brazo area approximately 1 km west of the MMT and some of the best assay results ever reported on the Noria-Coloradito portion of the Property. The Company has also identified three new target areas that have never been drill tested.
About
Silver Dollar is a mineral exploration company that completed its initial public offering in
Contact:
Tel: (204) 724-0613
Email: mike@silverdollarresources.com
Forward-Looking Statements
This news release contains forward-looking statements. All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements in this news release include statements regarding: the Company's expectation to complete the Acquisition, the timing of the closing of the Acquisition and the provision of the closing deliverables in respect of the Acquisition. The forward-looking statements reflect management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking statements including: the Company may never complete the Acquisition in the time frame expected or at all; First Majestic may not provide the closing deliverables required to complete the Acquisition and the risk that adverse market conditions and/or other factors beyond the control of the parties prevent the completion of the Acquisition. Additionally, forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this news release, including that the Company will be able to complete the requirements necessary to close the Acquisition; that the Acquisition will close in the short time expected; that First Majestic will complete its obligations required to complete the Acquisition and that there will be no events or circumstances outside the control of the Company or First Majestic that will prevent the completion of the Acquisition. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. Factors that could cause actual results or events to differ materially from current expectations include general market conditions and other factors beyond the control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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