Dolly Varden Silver Upsizes Bought-Deal Financing
Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) is excited to share that it has reached an updated agreement with Research Capital Corporation, which serves as the sole bookrunner and co-lead underwriter, alongside Haywood Securities Inc. This new agreement increases the size of its previously announced bought-deal financing. Under this arrangement, the Underwriters will acquire a mix of the Company's securities, yielding total gross proceeds of $28,000,000, which will be structured as follows:
Offering Details
The total proceeds will consist of:
a) 10,000,000 common shares of the Company priced at $1.00 each, generating gross proceeds of $10,000,000. These shares will be issued under a prospectus supplement to the Company’s final short form base shelf prospectus;
b) 14,400,000 Common Shares that qualify as "flow-through shares," priced at $1.25 per FT Share, amounting to gross proceeds of $18,000,000, which will be issued through a private placement.
Participation of Eric Sprott
Mr. Eric Sprott, via 2176423 Ontario Ltd., has expressed his intention to take part in the Offerings.
Allocation of Proceeds
The net proceeds from the Common Shares will be directed towards working capital and general corporate needs. The gross proceeds from the FT Shares will mainly fund further exploration, mineral resource expansion, and drilling activities at the Kitsault Valley project in British Columbia, along with being allocated for working capital as allowed.
Anticipated Closing Dates
The first tranche of the Offerings is expected to close shortly, with additional closings to follow. The closing is subject to obtaining all required regulatory approvals, including those from the TSX Venture Exchange.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is dedicated to mineral exploration, focusing on the advancement of the Kitsault Valley Project, which encompasses both the Dolly Varden and Homestake Ridge projects. This project is situated in an area renowned for its high-grade silver and gold resources, as well as significant potential for future precious metal discoveries.
Frequently Asked Questions
What is the total amount of the upsized financing?
The upsized financing totals $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 allocated for working capital, corporate purposes, and further exploration at the Kitsault Valley project.
Is Eric Sprott participating in the financing?
Yes, Eric Sprott has confirmed his intention to participate in the Offerings.
When is the expected closing of the Offerings?
The first tranche is anticipated to close soon, with additional closings scheduled later, pending regulatory approvals.
