/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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VANCOUVER, Sept. 12, 2019 /CNW/ - Dolly Varden
Silver Corporation (TSX.V: DV | US OTC: 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
$3.5 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" ("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
("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. ("Hecla") 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. ("Mackie") 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).
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.
