Overview

Eric Sprott is a billionaire investor who has committed a major portion of his investments to the mining industry. This amounts to around $200 to $300 million of his wealth. In 2019, Sprott announced that he prefers to invest in junior mining companies as opposed to major mining companies given their potential for making new discoveries and higher growth.

As investors seek entrance into the mining industry, they will likely find Mr. Sprott’s recent investments to be of particular interest given his successful track record. Coattail investing is an increasingly popular and simple investment strategy in which an investor mimics the investments of a renowned investor like Eric Sprott.

One such example is Silver Dollar Resources (CSE: SLV, OTCQX: SLVDF, FSE: 4KW), where Mr. Sprott is a co-founding shareholder and now owns approximately 17% of shares issued. Silver Dollar is a mineral exploration company with an aggressive growth strategy, having acquired its flagship La Joya Silver Project within three months of going public last year.

The company is led by an experienced management team with 100 years of collective experience in exploration, mining, and the capital markets. Also, Silver Dollar’s two technical advisors are past recipients of the PDAC Thayer Lindsley International Mineral Discoveries Award for discovering over a billion ounces of silver and 10 million ounces of gold in their careers.

Silver Dollar is fully funded to execute its 2021-2022 exploration plans with approximately $10 million in the treasury. The bulk of these funds stem from a financing closed last year with lead orders from Mr. Sprott and First Majestic Silver Corp. (TSX: FR, NYSE: AG, FSE: FMV), who is now also one of Silver Dollar’s largest shareholders with approximately 14% of shares issued.

The company boasts a tight share structure with 41,847,237 shares issued, 3,200,000 stock options with an average exercise price of $1.48, and a total of 45,047,237 shares outstanding on a fully diluted basis.

Silver Dollar’s Company Highlights

• A mineral exploration company with an aggressive growth strategy.
• Fully funded for drilling on the company’s flagship La Joya Silver Project located in the mining-friendly state of Durango in the heart of the Mexican Silver Belt.
• Eric Sprott is a co-founding shareholder who currently owns ~17% of shares issued.
• First Majestic Silver, one of the largest silver producers in Mexico, is also a strategic investor who owns ~14% of the shares issued.
• The company is led by an experienced management team with 100 years of collective experience in exploration, mining, and the capital markets.
• The company’s technical advisors include two past recipients of the PDAC Thayer Lindsley Award for their history of world-class mineral deposit discoveries.
• Evaluating potential spinout of Red Lake gold assets into a separate public company.
• Actively reviewing additional drill-ready projects in mining-friendly jurisdictions for potential acquisition.