Dolly Varden Silver Corporation (TSX.V: DV) (the "Company" or "Dolly Varden") is pleased to announce that it has completed a private placement financing (the "Offering") to raise gross proceeds of approximately $3.0 million from the sale of : (a) 781,250 common shares in the capital of the Company ("Common Shares") at a price of $0.64 per Common Share; and (b) 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 and other corporate purposes. 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.
In connection with the Offering, the Company has agreed to pay a finders' fee in respect of those purchasers introduced to the Company by Eventus Capital Corp.; Leede Jones Gable Inc.; and Haywood Securities Inc. (the "Finders"). The Finders 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 Finders; and (b) Common Share purchase warrants ("Finders' Warrants") equal to 6% of number of Common Shares and Flow-Through Shares sold to purchasers under the Offering who were introduced by the Finders. Each Finders' Warrant will entitle the Finders 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 Finders' fee and issuance of the Finders' Warrants are subject to the approval of the TSX Venture Exchange ("TSXV"), receipt of any other required regulatory approvals and other customary conditions. The Common Shares and Flow-Through Shares sold in the placement and Finder's Warrants and any shares issued upon the exercise of the warrants are subject to a hold period which expires on April 20, 2017. A total of 33,841,650 common shares of the Company are outstanding following the closing of this private placement.
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.
Source: Dolly Varden Silver
