Dolly Varden Silver Corporation (TSX-V: DV) (U.S.: DOLLF) is pleased to announce that it has closed the private placement financing to raise gross proceeds of approximately $3 million, announced on June 5, 2019. The Offering consisted of the sale of 12,000,000 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 $0.25 per share.
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 701,351 common shares at a price of $0.20 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 has paid a finder’s fee in respect of those purchasers under the Offering introduced to the Company by Eventus Capital Corp., Sprott Capital Partners LP, and Industrial Alliance Securities Inc. Eventus Capital Corp. received 846,000 common shares at a deemed price of $0.20 per share, equal to 6% of the gross proceeds received from purchasers under the Offering who were introduced to the Company by it. Sprott Capital Partners LP received a finder’s fee of $9,000 and Industrial Alliance Securities Inc. received a finder’s fee of $900.
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. The Flow-Through Shares issued pursuant to the closing are subject to a statutory hold period which expires October 29, 2019. A total of 70,919,755 common shares in the Company are outstanding following the closing.
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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