Silver Dollar ponders spinout of Cdn projects
2020-10-07 09:36 ET - News Release
Mr. Mike Romanik reports
SILVER DOLLAR CONSIDERS SPINOUT OF RED LAKE GOLD PROJECTS
Silver Dollar Resources Inc.'s board of directors is evaluating the merits of a transaction to transfer its Canadian exploration projects to a new subsidiary (SpinCo) that would be spun out to Silver Dollar shareholders. The intent of the transaction would be twofold: (1) position Silver Dollar to focus on the exploration and development of the advanced stage La Joya Silver project in Durango, Mexico, and to pursue similar assets for potential acquisition; and (2) position SpinCo to operate as an independent company that would seek a separate public listing and focus on building a pure play gold exploration company around its discovery-stage Red Lake projects.
Since the inception of Silver Dollar in November, 2018, the Red Lake gold camp has seen a resurgence in activity with major discoveries and new mines coming on-line. Based on the current market caps of several other junior exploration companies with similar stage Red Lake projects, the board feels that a spinout of the Red Lake assets would justify a material valuation and be beneficial to Silver Dollar shareholders.
The company can make no assurance that a spinout will take place as it would be subject to several conditions that include satisfying stock exchange listing requirements, the assessment of legal and tax ramifications, determining final details of the transaction, receipt of all regulatory approvals, any required shareholder approval, the availability of financing for the new subsidiary, and market conditions. The company will provide further details if and when available in accordance with the policies of the Canadian Securities Exchange (CSE).
"We are actively pursuing additional advanced-stage silver projects for acquisition and as the company matures there may come a time when a spinout of our Red Lake gold projects is an appropriate step to maximize shareholder value," said Mike Romanik, president of Silver Dollar.
About Silver Dollar Resources Inc.
Silver Dollar Resources is a mineral exploration company focused on creating shareholder value by finding and developing economic precious and base metal deposits. Having completed its initial public offering in May, 2020, the company trades on the CSE under the symbol SLV and on the OTCQB under SLVDF. Silver Dollar's projects are located in two of the prolific mining jurisdictions in the world and include the advanced exploration and development stage La Joya Silver project in Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake mining district of Ontario, Canada. The company has an aggressive growth strategy and is actively reviewing projects in mining-friendly jurisdictions internationally for potential acquisition.
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