NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
November 16, 2020 – Vancouver, BC: Dolly Varden Silver Corporation (TSX.V: DV | US OTC: DOLLF) (the “Company” or “Dolly Varden”) is pleased to announce that it has closed its non-brokered private placement offering (the “Offering”) to raise aggregate gross proceeds of approximately $7,000,000, previously announced on October 22, 2020. The Offering consisted of the sale of 7,070,000 common shares of Dolly Varden that qualify as “flow-through shares” as defined under the Income Tax Act (Canada) at a price of $1.00 per share (the “Offered Shares”).
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 Offerings and acquired 799,848 common shares of Dolly Varden (“Common Shares”) at a price of $0.89 per share. The securities issued to Hecla were in addition to those issued as part of the Offering.
The Company will pay aggregate cash finder’s fees of $408,600 in connection with subscriptions under the Offering from subscribers introduced to the Company by Eventus Capital Corp., Mackie Research Capital Corporation, Industrial Alliance Securities Inc. and Accilent Capital Management Inc.
The net proceeds of the Offering is intended to be used for further exploration, mineral resource expansion and drilling, as well as for working capital as permitted.
The shares issued pursuant to the Offering are subject to a statutory hold period which expires on March 14, 2021.
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.