March 31, 2022
VANCOUVER, BC, March 31, 2022 – Vancouver, BC: Dolly Varden Silver Corporation (TSXV: DV) (OTC: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce that it has closed its previously announced best efforts brokered private placement (the “Offering”) pursuant to which the Company has issued 11,274,400common shares of the Company that qualify as “flow-through shares” as defined under the Income Tax Act (Canada) (the “Offered Shares“) at a price of $1.02 per share (“Offered Price“). This includes the full exercise of the Agents’ (as defined below) over-allotment option (the “Agents’ Option”) to sell up to an additional 15% of the number of Offered Shares sold in the Offering at the Offering Price. The aggregate gross proceeds to the Company is approximately $13 million, which includes approximately $11.5 million from the Offering and $1.5 million from Hecla Canada Ltd.’s participation.
Shawn Khunkhun, CEO & Director of Dolly Varden Silver remarked, “By consolidating seven high-grade silver and gold deposits and historic mines with potential development synergies as well as excellent exploration upside, we are on track to be the next pre-development Company, located within an accessible and stable region of B.C.’s prolific Golden Triangle. With $26 million in the treasury, we are grateful to existing and new strategic shareholders, including Hecla Mining and Eric Sprott that have supported Dolly Varden’s effort to advance one of the largest undeveloped silver-gold projects in Western Canada. We will announce upcoming drilling strategy and mobilization plans shortly.”
The Offering was completed by Research Capital Corporation and Eventus Capital Corp., as co-lead agents and joint bookrunners, on behalf of a syndicate of agents including Haywood Securities Inc. and Gravitas Securities Inc. (collectively, the “Agents“). In connection with the Offering, the Agents received an aggregate cash fee of up to 6.0% of the gross proceeds of the Offering, including in respect of the Agent’s Option.
The proceeds of the Offering will be used for further exploration, mineral resource expansion and drilling in Kitsault Valley located in northwestern British Columbia, Canada, as well as for working capital as permitted.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 3,448,200 Offered Shares pursuant to the Offering for total consideration of $2,499,945. After closing of the Offering, Mr. Sprott now beneficially owns or controls 25,632,182 common shares of the Company and 1,250,000 common share purchase warrants of the Company representing approximately 11.1% on a non-diluted basis and 11.6% on a fully diluted basis assuming the exercise of all convertible securities of the Company.