Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) has entered into an agreement for a further strategic investment by Hecla Canada Ltd. whereby Hecla has agreed to subscribe for nearly 15.4M shares at C$0.65 each for gross proceeds of C$10M. Upon completion, Hecla will increase its shareholding to 15.7% from 10.6%, calculated on an undiluted basis.
“Hecla’s support for Dolly Varden Silver’s high-grade Kitsault Valley Project in BC’s prolific Golden Triangle is validated with today’s financing news,” Shawn Khunkhun, Dolly Varden CEO remarked. “Hecla is the world’s fastest growing established silver producer, the largest in the US and soon to be in Canada. We celebrate Hecla agreeing to increase their stake in Dolly from 10% to 15% and want to extend our gratitude for their financial and technical support of the company and the project.”
Dolly Varden has agreed with Hecla that the company will not complete any further debt or equity financings for the remainder of 2023. Additionally, Dolly Varden has agreed that between January 1, 2024 and September 1, 2024, without the prior consent of Hecla, it will not complete any debt or equity financings other than equity financings for net proceeds to the company of up to C$15M and provided that the issue price under such financing is greater than C$0.65 per security.
C$6M of the net proceeds from the offering will be used for exploration expenditures, mineral resource expansion, and related costs in the Kitsault Valley project, located in northwestern British Columbia, Canada, with the balanced to be used for working capital and G&A costs.
No bonuses, finder’s fee or commissions were paid in connection with the offering. The shares issued will be subject to a four-month hold period from the closing of the offering in addition to any other restrictions under applicable law. Closing is anticipated on or about 1 November 2023.
For further information, please visit: www.dollyvardensilver.com
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