Dolly Varden Silver Increases Financing to $28 Million
Dolly Varden Silver Announces Upsize of Bought-Deal Financing
Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) is pleased to announce that it has entered into an amended agreement with Research Capital Corporation, as the sole bookrunner and co-lead underwriter, along with Haywood Securities Inc. The agreement enhances the size of its previously announced bought-deal financing, through which the Underwriters will purchase a combination of securities of the Company for aggregate gross proceeds of $28,000,000, consisting of:
Details of the Offering
The total proceeds comprise:
a) 10,000,000 common shares of the Company at a price of $1.00 per share for gross proceeds of $10,000,000, to be issued under a prospectus supplement to the Company’s final short form base shelf prospectus;
b) 14,400,000 Common Shares qualifying as "flow-through shares" at a price of $1.25 per FT Share for gross proceeds of $18,000,000, to be issued under a private placement.
Eric Sprott's Participation
Mr. Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the Offerings.
Use of Proceeds
The net proceeds from the Common Shares will be allocated for working capital and general corporate purposes. The gross proceeds from the FT Shares will primarily support further exploration, mineral resource expansion, and drilling in the Kitsault Valley project in British Columbia, and be used for working capital as permitted.
Expected Closing Dates
The first tranche of the Offerings is anticipated to close soon, with subsequent closings expected thereafter. Closing is contingent on receiving all necessary regulatory approvals, including those from the TSX Venture Exchange.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing the Kitsault Valley Project, which integrates the Dolly Varden and Homestake Ridge projects. The project is located in a region known for high-grade silver and gold resources, along with substantial potential for future precious metal deposits.
Frequently Asked Questions
What is the total amount of the upsized financing?
The upsized financing amounts to $28 million.
Who are the co-lead underwriters for this financing?
The co-lead underwriters are Research Capital Corporation and Haywood Securities Inc.
What will the proceeds from the financing be used for?
The proceeds will be utilized for working capital, corporate purposes, and further exploration at the Kitsault Valley project.
Is Eric Sprott participating in the financing?
Yes, Eric Sprott has indicated his intention to participate in the Offerings.
When is the expected closing of the Offerings?
The first tranche is expected to close soon, with subsequent closings occurring later pending regulatory approvals.
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