/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, Aug. 21, 2020 /CNW/ - Dolly Varden Silver
Corporation ("Dolly Varden" or the "Company") (TSXV:
DV) (OTC: DOLLF), is pleased to announce that it has closed its
previously announced private placement of units of the Company (the
"Units") pursuant to which the Company issued 14,084,500
Units at a price of $0.71 per Unit
(the "Offering Price") for aggregate gross proceeds of
approximately $10,000,000 (the
"Offering"). The Offering was led by Mackie Research Capital
Corporation, as sole bookrunner, and Eventus Capital Corp. as
co-lead agents (together, the "Agents").
Each Unit is comprised of one common share of the Company (a
"Common Share") and one-half of one Common Share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant is
exercisable to acquire one Common Share (a "Warrant Share")
at a price of $1.10 per Warrant Share
for a period of 24 months from the closing of the Offering.
Provided that if, at any time prior to the expiry date of the
Warrants, the closing price of the Common Shares on the TSX Venture
Exchange (the "Exchange"), or other principal exchange on
which the Common Shares are listed, is greater than $1.75 for 10 consecutive trading days, the
Company may, at the Company's discretion, and at any time going
forward, within 15 days of the occurrence of such event, deliver a
notice to the holders of Warrants accelerating the expiry date of
the Warrants to the date that is 30 days following the date of such
notice (the "Accelerated Exercise Period"). Any unexercised
Warrants shall automatically expire at the end of the Accelerated
Exercise Period.
Pursuant to the ancillary rights agreement between Hecla Canada
Ltd. ("Hecla") and the
Company, dated September 4, 2012,
Hecla exercised its anti-dilution
right in respect of the Offering and acquired 1,881,896 Units at
the Offering Price for proceeds of approximately $1.3 million to maintain its pro-rata equity
interest in the Company. The Units issued to Hecla were in addition to those issued as part
of the Offering.
The Company intends to use the net proceeds from the Offering
for further exploration, mineral resource expansion and drilling at
the Dolly Varden silver property in northwestern British Columbia, Canada, working capital and
general corporate purposes.
Eric Sprott, through 2176423
Ontario Ltd., a corporation which is beneficially owned by him,
acquired 2,500,000 Units pursuant to the Offering. After closing of
the Offering, Mr. Sprott now beneficially owns or controls
22,183,982 Common Shares and 1,250,000 Common Share purchase
warrants representing approximately 18.3% of the issued and
outstanding Common Shares on a non-diluted basis and 19.1% on a
partially diluted basis assuming exercise of all warrants held by
2176423 Ontario Ltd.
In connection with the Offering, the Agents received an
aggregate cash fee equal to 6.0% of the gross proceeds from the
Offering. In addition, the Company issued to the Agents 845,070
non-transferable compensation warrants (the "Compensation
Warrants"). Each Compensation Warrant entitles the holder
thereof to purchase one Common Share at an exercise price equal to
the Offering Price for a period of 24 months following the closing
of the Offering.
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 accordingly, 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 requirements or
pursuant to exemptions therefrom. This press release does not
constitute an offer to sell or a solicitation to buy any securities
in any jurisdiction.
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 or
forward-looking information under applicable Canadian securities
legislation that may not be based on historical fact, including,
without limitation, statements containing the words "believe",
"may", "plan", "will", "estimate", "continue", "anticipate",
"intend", "expect", "potential" and similar expressions.
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, final TSX Venture Exchange approval of the
Offering, the use of proceeds with respect to the Offering, the
results of previous field work and programs and the continued
operations of the current 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.
SOURCE Dolly Varden Silver Corp.