VANCOUVER, Sept. 14, 2017 /CNW/ - Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the "Company" or "Dolly Varden") is pleased to announce that it has completed its private placement financing originally announced on August 29, 2017 (the "Offering") to raise gross proceeds of approximately $5.7 million from the sale of: (a) 2,739,726 common shares in the capital of the Company ("Common Shares") at a price of $0.73 per share; and (b) 3,529,411 Common Shares that qualify as "flow-through shares" ("Flow-Through Shares") as defined in the Income Tax Act (Canada) at a price of $0.85 per 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 British Columbia, Canada, as well as ongoing working capital for 2017. The 2017 exploration program budget has been extended from $3.5 million to $6 million and increased from 5,000 meters to approximately 12,000 metres of diamond drilling.
In connection with the Offering, the Company will pay a finder's fee in respect of those purchasers introduced to the Company by Eventus Capital Corp. ("Eventus"). Eventus will receive a cash payment equal to 6% of the gross proceeds received from purchasers under the Offering who were introduced by Eventus, for a total of approximately $299,387.96.
The Common Shares and Flow-Through Shares issued under the Offering are subject to a statutory hold period which expires on January 15, 2018. A total of 44,617,729 Common Shares are outstanding following the closing of the Offering.
In connection with the Offering, Hecla Canada Ltd. ("Hecla") has exercised its pre-emptive right under the Ancillary Rights Agreement dated September 4, 2012 between the Company and Hecla to maintain its ownership interest in the Company. Hecla has subscribed for 1,000,000 Common Shares at $0.73 per share for additional gross proceeds to the Company of $730,000.
About Dolly Varden Silver Corporation - Dolly Varden 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 hosts numerous other, on-trend, high-grade deposits (Eskay Creek, Brucejack).
