Dolly Varden Silver Corporation (TSX-V: DV) (US OTC: DOLLF) is pleased to announce that it has closed the private placement financing to raise gross proceeds of approximately $3.5 million announced on August 26, 2019. The Offering consisted of the sale of 5,714,286 common shares in the capital of the Company that qualify as “flow-through shares” as defined in the Income Tax Act (Canada), at a price of $0.35 per share and 5,000,000 common shares at a price of $0.30 per share. The Offering was fully subscribed and included a strategic investment by Mr. Eric Sprott.
Pursuant to the ancillary rights agreement between Hecla Canada Ltd. and the Company dated September 4, 2012, Hecla exercised its anti-dilution right and acquired 1,246,675 common shares at a price of $0.30 per share in order to maintain its pro-rata equity interest in the Company. The securities issued to Hecla were in addition to those issued as part of the Offering.
In connection with the Offering, the Company paid Mackie Research Capital Corp. a finder’s fee of 583,333 Common Shares at a deemed price of $0.30 per share, equal to 5% of the gross proceeds received by the Company from purchasers under the Offering who were introduced to the Company by Mackie.
The net proceeds of the Offering will be used for further exploration and mineral resource expansion of the Dolly Varden silver property in northwestern British Columbia, Canada and for ongoing working capital. The Flow-Through Shares and Common Shares issued pursuant to the closing are subject to a statutory hold period which expires January 13, 2020. A total of 83,464,049 Common Shares in the Company are outstanding following closing of the Offering and the Hecla subscription.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
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We acknowledge the [financial] support of the Government of Canada.