/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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VANCOUVER, BC, June 11, 2020 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV) (OTC: DOLLF) (the "Company"
or "Dolly Varden") is pleased to announce that on June
10 it has closed two private placement financings (the
"Offerings") to raise aggregate gross proceeds of
approximately $7.68 million,
previously announced on May 19 and
May 20, 2020, respectively. The
Offerings consisted of the sale of: (i) 6,969,697 common shares in
the capital of the Company (the "Common Shares") at a price
of $0.33 per share; and (ii)
10,000,000 Common Shares that qualify as "flow-through shares" as
defined in the Income Tax Act (Canada) at a price of $0.45 per share. The Offerings were fully
subscribed and included a strategic investment by Mr. Eric Sprott.
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 1,311,989 Common
Shares at a price of $0.33 per share
and 1,112,346 Common Shares at a price of $0.40 per share to maintain its pro-rata equity
interest in the Company. The securities issued to Hecla were in addition to those issued as part
of the Offerings.
In connection with the Offerings, the Company paid Mackie
Research Capital Corp. ("Mackie") $54,000 and issued 418,182 Common Shares at a
deemed price of $0.33 per share as a
finder's fee, equal to 6% of the gross proceeds received by the
Company from purchasers under the Offering who were introduced to
the Company by Mackie. The Company paid Eventus Capital Corp.
("Eventus") a finder's fee of $216,000, equal to 6% of the gross proceeds of
the Offerings from those purchasers introduced to the Company by
Eventus.
The net proceeds of the Offerings will be used for further
exploration and mineral resource expansion of the Dolly Varden
silver property in northwestern British
Columbia, Canada and for ongoing working capital. The
shares issued pursuant to the Offerings are subject to a statutory
hold period which expires on October
11, 2020. A total of 103,766,058 Common Shares in the
Company are outstanding following closing of the Offerings and the
Hecla subscriptions.
Mr. Sprott is considered a related party of the Company under
Multilateral Instrument 61-101 as a result of his ownership of more
than 10% of the currently issued and outstanding Common Shares. As
a result, the issuance of Common Shares to Mr. Sprott, pursuant to
the Offerings is considered a related party transaction. The
Company relied on exemptions from the formal valuation and minority
shareholder approval requirements provided under sections 5.5(a)
and 5.7(1)(a) of Multilateral Instrument 61-101 on the basis that
participation in the Offering by Mr. Sprott does not exceed 25% of
the fair market value of the Company's market capitalization.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company
focused on exploration in northwestern British Columbia. Dolly Varden has two
projects, the namesake Dolly Varden silver property and the nearby
Big Bulk copper-gold property. The Dolly Varden property is
considered to be highly prospective for hosting high-grade precious
metal deposits, based on its similar structural and stratigraphic
setting to other high-grade deposits (Eskay
Creek, Brucejack) in the region. The Big Bulk property is
prospective for porphyry and skarn style copper and gold
mineralization similar to other such deposits in the region (Red
Mountain, KSM, Red Chris).
FORWARD-LOOKING STATEMENTS:
This release may contain forward-looking statements or
forward-looking information under applicable Canadian securities
legislation that may not be based on historical fact, including,
without limitation, statements containing the words "believe",
"may", "plan", "will", "estimate", "continue", "anticipate",
"intend", "expect", "potential" and similar expressions.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance, or achievements of Dolly Varden to be
materially different from any future results, performance, or
achievements expressed or implied by the forward-looking
statements. Forward looking statements or information relates to,
among other things, the use of proceeds with respect to the
Offerings, the results of previous field work and programs and the
continued operations of the current exploration program,
interpretation of the nature of the mineralization at the project
and that that the mineralization on the project is similar to Eskay
and Brucejack, results of the mineral resource estimate on the
project, the potential to grow the project, the potential to expand
the mineralization, the planning for further exploration work, the
ability to de-risk the potential exploration targets, and our
beliefs about the unexplored portion of the property. These
forward-looking statements are based on management's current
expectations and beliefs but given the uncertainties, assumptions
and risks, readers are cautioned not to place undue reliance on
such forward-looking statements or information. The Company
disclaims any obligation to update, or to publicly announce, any
such statements, events or developments except as required by
law.
For additional information on risks and uncertainties, see the
Company's most recently filed annual management discussion &
analysis ("MD&A"), which is available on SEDAR at
www.sedar.com. The risk factors identified in the MD&A are not
intended to represent a complete list of factors that could affect
the Company.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this news
release.
This release does not constitute an offer to sell or a
solicitation of an offer to buy of any securities in the United
States. 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 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 laws or pursuant to available
exemptions therefrom.
SOURCE Dolly Varden Silver Corp.