Dolly Varden Silver announces strategic investment by Hecla
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The company said it has entered into an agreement for a further strategic investment by Hecla Canada whereby Hecla has agreed to subscribe for 15,384,616 common shares of the company at a price of $0.65 per common share for gross proceeds of $10 million.
Upon completion of the offering, Hecla will increase its shareholding in the company to 15.7% from 10.6%, calculated on an undiluted basis, it added.
Dolly Varden said that $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.
CEO Shawn Khunkhun commented, “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. 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 Silver is a mineral exploration company focused on advancing its 100% held Kitsault Valley project (which combines the Dolly Varden project and the Homestake Ridge project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water.
According to the company, the 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines.
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