Business
Dolly Varden Silver Announces Closing of $10M Strategic Investment by Hecla
Vancouver, British Columbia--(Newsfile Corp. - November 2, 2023) - Dolly Varden Silver Corporatio...
About this update from Dolly Varden Silver Corporation
[{"type":"text","content":"Dolly Varden Silver Announces Closing of $10M Strategic Investment by HeclaVancouver, British Columbia--(Newsfile Corp. - November 2, 2023) - Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the \"Company\" or \"Dolly Varden\") is pleased to announce that, further to its news release dated October 30, 2023, the Company completed the sale of 15,384,616 common shares of the Company to Hecla Canada Ltd. (\"Hecla\") on November 1, 2023 at a price of $0.65 per Common Share for gross proceeds of $10 million (\"Offering\"). As a result of the Offering, Hecla has increased its shareholding in the Company to 15.7% from 10.6%, calculated on an undiluted basis.No bonuses, finder's fee or commissions were paid in connection with the Offering. The Common Shares issued pursuant to the Offering are subject to a four-month hold period from the closing of the Offering in addition to any other restrictions under applicable law.In connection with the Offering, 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 $15 million and provided that the issue price under such financing is greater than $0.65 per security. These restrictions do not capture customary exceptions such as the issuances of securities related to the Company's equity based incentive compensation, the exercise of existing convertible securities and strategic transactions for non-cash consideration.$6 million 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.Hecla is considered a related party of the Company under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") as a result of its ownership of more than 10% of the currently issued and outstanding Common Shares. As a result, the issuance of Common Shares to Hecla pursuant to the Offerings was a related party transacti...