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Dolly Varden Silver Announces Closing of Second Tranche of Bought-Deal Offering for a Total of $32.2 Million
Vancouver, British Columbia--(Newsfile Corp. - September 27, 2024) - Dolly Varden Silver Corporat...
About this update from Dolly Varden Silver Corporation
[{"type":"text","content":"Dolly Varden Silver Announces Closing of Second Tranche of Bought-Deal Offering for a Total of $32.2 MillionVancouver, British Columbia--(Newsfile Corp. - September 27, 2024) - Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the \"Company\" or \"Dolly Varden\") is pleased to announce the closing of the second and final tranche of its previously announced bought deal financing (the \"Offering\") for additional gross proceeds of $4,500,000 from the issuance of 3,600,000 FT Shares (as defined below). The aggregate gross proceeds to the Company from the completion of the Offering (including the gross proceeds raised from the completion of the first tranche of the Offering on September 4, 2024) is $32,200,000, from the issuance of:11,500,000 common shares of the Company (\"Common Shares\") at a price of $1.00 per Common Share for gross proceeds of $11,500,000, issued under a prospectus supplement dated August 21, 2024 to the Company's final short form base shelf prospectus dated April 25, 2023 (\"Prospectus Offering\"), including the full exercise of the over-allotment option under the Prospectus Offering; and16,560,000 Common Shares that qualify as \"flow-through shares\" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the \"Tax Act\") (each, a \"FT Share\") at a price of $1.25 per FT Share for gross proceeds of $20,700,000, on a bought deal private placement basis (\"Private Placement Offering\"), including the full exercise of the over-allotment option under the Private Placement Offering.The Offering was completed on a bought deal basis pursuant to an underwriting agreement dated August 21, 2024 (the \"Underwriting Agreement\") between the Company and a syndicate of underwriters co-led by Research Capital Corporation, as co-lead underwriter and sole bookrunner, and Haywood Securities Inc., as co-lead underwriter, and including Raymond James Ltd. (collectively, the \"Underwriters\"). Eventus Capital Corp. is a special advisor to the Company.The net proceeds from the sale of Common Shares will be used for working capital and general corporate purposes. The gross proceeds from the sale of FT Shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in northwestern British Columbia, Canada, or any other eligible Canadian pro...