Vancouver, British Columbia (FSCwire) - Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the “Company” or “Dolly Varden”) is pleased to announce that it has appointed Gary Cope to the positions of President and CEO and as a director of the board. Gary Cope has accumulated over 33 years of experience in Corporate Management & Strategy, with a specific emphasis on Public Company Finance. Mr. Cope arranged financing for the South Kemess project, and later became heavily involved with the negotiations & selling of the deposit to Royal Oak Mines. In the past 12 years, he has acted as a Senior Officer & Director for various publicly held companies, such as St. Phillips Resources. Mr. Cope served as the President, CEO & Director of Orko Silver Corp., and was instrumental in negotiating and arranging the sale of Orko Silver to Coeur d’Alenes Mine Corp in 2013, and currently holds those positions with Orex Minerals Inc., and Barsele Minerals Corp. Rosie Moore will be leaving the Company after a two year period as the Interim President and CEO, and has also agreed to step down from her board position which she has held since July 2013. We thank Rosie for her service to the Company during difficult market conditions and a transitional time at the Company.
The Company intends to undertake a private placement financing (the “Offering”) to raise gross proceeds of up to $3.0 million from the sale of up to: (a) 781,250 common shares in the capital of the Company (“Common Shares“) at a price of $0.64 per Common Share; and (b) up to 3,472,222 Common Shares that qualify as “flow-through shares” as defined in Canada’s Income Tax Act (“Flow-Through Shares”), at a price of $0.72 per Flow-Through Share.
The net proceeds of the Offering will be used for further exploration and mineral resource expansion of the Dolly Varden silver property in northwestern BC. The work preparing for the 2017 program has already commenced and will continue for the next 120 days. Our planning will be focused on defining drill targets to efficiently expand the current NI 43-101 high-grade silver mineral resource estimate and to further de-risk any high potential exploration targets.
“We have put together an exceptional geological team with a diverse set of skills and knowledge to support our exploration effort at Dolly Varden. After validating the high grade silver rich nature of the Dolly Varden property in the 2015 maiden NI 43-101 mineral resource estimate, we expect that current estimated high-grade silver mineralization is further expandable, and we believe there are similar deposits on the under-explored remainder of the large project where the same lithologies, structure, alteration and indicator elements have been defined in previous field programs. The results achieved in 2016 on Ace-Galena are an example of the growing opportunity at Dolly Varden,” said Gary Cope, President and CEO of Dolly Varden.
In connection with the Offering, the Company has agreed to pay a finder’s fee in respect of those purchasers introduced to the Company by Eventus Capital Corp. (the “Finder“). The Finder will receive: (a) cash with a value equal to 6% of the gross proceeds received from purchasers under the Offering who were introduced by the Finder; and (b) Common Share purchase warrants (“Finder’s Warrants”) equal to 6% of number of Common Shares and Flow-Through Shares sold to purchasers under the Offering who were introduced by the Finder. Each Finder’s Warrant will entitle the Finder to purchase one Common Share at a price of $0.72 per Common Share for a period of 24 months from the date of the closing of the Offering.
The issuance of the Common Shares, Flow-Through Shares, payment of the Finder’s fee and issuance of the Finder’s Warrants are subject to the approval of the TSX Venture Exchange (“TSXV”), receipt of any other required regulatory approvals and other customary conditions. Closing of the Offering is anticipated to occur on or about December 19, 2016. Securities issued under the Offering will be subject to a four-month hold period.
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, Flow-Through Shares and warrants to maintain its pro rata, equity interest in the Company. If Hecla exercises its rights under the ARA, any securities acquired by Hecla will be in addition to those detailed above.
In association with recent director and executive appointments, the Company granted a total of 650,000 Common Share purchase options, each of which entitles the holder to purchase one Common Share at a price of $0.65 per Common Share exercisable for the five years following the date of grant. The grant of stock options was made in accordance with the Company’s January 2012 share option plan and is subject to TSXV acceptance. Any Common Shares issued on the exercise of these stock options will be subject to a four-month hold period from the date of grant.
About Dolly Varden - Dolly Varden Silver Corporation is a mineral exploration company focused on the exploration of the Dolly Varden silver property located in northwestern British Columbia, Canada. The entire 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, on-trend, high-grade deposits (Eskay Creek, Brucejack). 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. The Dolly Varden deposit contains an estimated 3.1 million tonnes of Indicated Mineral Resources at an average grade of 321.6 grams of silver per tonne and 0.9 million tonnes of Inferred Mineral Resources at an average grade of 373.3 grams of silver per tonne.
