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VANCOUVER, June 5, 2019 /CNW/ - Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the "Company" or "Dolly Varden") is pleased to announce that due to strong investor demand it has increased the previously announced non-brokered private placement financing (the "Offering") to raise gross proceeds of up to $3.0 million from the sale of up to 12,000,000 common shares that qualify as "flow-through shares" ("Flow-Through Shares"), as defined under the Income Tax Act (Canada), at a price of $0.25 per Flow-Through Share.
The Company will pay 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. (the "Finders"). The Finders will receive either common shares in the Company or cash equal to 6% of the gross proceeds received from purchasers under the Offering who were introduced to the Company by the applicable Finders.
The issuance of the Flow-Through Shares, and payment of the Finders' fees, are subject to the approval of the TSX Venture Exchange ("TSXV"), receipt of any other required regulatory approvals and other customary closing conditions. Closing of the Offering is anticipated to occur on or about June 18th, 2019. Securities issued under the Offering will be subject to a four-month hold period.
The net proceeds of the Offering will be used for further exploration and mineral resource expansion and drilling of the Dolly Varden silver property in northwestern British Columbia, Canada. The 2019 exploration program will include diamond drilling and extensive soils sampling.
Pursuant to the ancillary rights agreement between Hecla Canada Ltd. ("Hecla") and the Company dated September 4, 2012 (the "ARA"), Hecla will be entitled to acquire common shares to maintain its pro-rata equity interest in the Company. If Hecla exercises its pro-rata rights under the ARA, any securities issued to Hecla will be in addition to those issued as part of the Offering.
About Dolly Varden
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).
The Company's Common Shares are listed and traded on the TSXV under the symbol "DV" and on the OTCBB system under the symbol "DOLLF".
This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the completion of the Offering, the receipt of TSXV and other regulatory approval with respect to the Offering, the results of previous field work and programs and the continued operations of the 2019 exploration program, interpretation of the nature of the mineralization at the project and that that the mineralization on the project is similar to Eskay and Brucejack, results of the mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our beliefs about the unexplored portion of the property. These forward-looking statements are based on management's current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
For additional information on risks and uncertainties, see the Company's most recently filed annual management discussion & analysis ("MD&A"), which is available on SEDAR at www.sedar.com and on the Company's website at www.dollyvardensilver.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
This release does not constitute an offer to sell or a solicitation of an offer to buy of any securities in the United States. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to available exemptions therefrom.
SOURCE Dolly Varden Silver Corp.
For further information: Dolly Varden Silver Corporation, Gary Cope, President and CEO, 1-604-687-8566, www.dollyvardensilver.com; Dolly Varden Silver Corporation, Alex Tsakumis, Vice President - Corporate Development, 1-604-687-8566, Email: [email protected]