VANCOUVER, June 28, 2019 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV | U.S.: DOLLF) (the
"Company" or "Dolly Varden") is pleased to announce
that it has closed the private placement financing (the
"Offering") 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" ("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. ("Hecla") and the
Company dated September 4, 2012 (the
"ARA"), 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).
FORWARD-LOOKING STATEMENTS:
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 use of proceeds 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. 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 TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX-V)
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.
