Dolly Varden Silver Corp. Secures CAD 28.76 Million Financing for Strategic Growth and Exploration
- Dolly Varden Silver Corp. raised CAD 28.76 million through private placement to enhance exploration in British Columbia.
- The Kitsault Valley project will advance using funds from the financing, focusing on high-grade silver and gold resources.
- Dolly Varden acquired interests in four properties, expanding its asset base and mineral exploration opportunities in the Golden Triangle.
Dolly Varden Silver Corporation Strengthens Market Position with Strategic Financing
Dolly Varden Silver Corporation (TSXV: DV) has successfully completed a significant private placement financing, raising CAD 28.76 million to bolster its exploration and development efforts in British Columbia's mineral-rich regions. The financing includes the sale of common shares and flow-through shares, with notable participation from prominent investors, including Eric Sprott. The company issues 2,445,500 common shares at CAD 4.60 each, generating gross proceeds of CAD 11.25 million, alongside two tranches of flow-through shares that collectively raise over CAD 17.5 million. The proceeds from this placement are earmarked for working capital, corporate purposes, and crucially, for advancing exploration at the Kitsault Valley project, which boasts high-grade silver and gold resources.
The Kitsault Valley project consists of the Dolly Varden and Homestake Ridge properties, located in a region famed for its mineral wealth. The strategic location allows Dolly Varden to capitalize on the existing infrastructure and geological potential in northwestern British Columbia. This financing also reflects the company's commitment to drilling activities aimed at expanding its mineral resources, addressing both immediate operational needs and long-term growth objectives. The underwriters of the offering, led by Research Capital Corporation and Raymond James Ltd., facilitate this capital infusion, marking a pivotal moment for Dolly Varden as it seeks to amplify its presence in the competitive mining sector.
In addition to the financing, Dolly Varden recently announces the acquisition of interests in four properties from MTB Metals Corp., further solidifying its footprint in the Golden Triangle region. The acquisition includes the American Creek, Theia, BA, and Red Cliff properties, spanning over 20,000 hectares. This strategic move not only enhances Dolly Varden’s asset base but also positions the company to explore additional mineralization opportunities, particularly in porphyry and skarn styles. The company issues 486,072 common shares to MTB Metals as part of the transaction, retaining a 1% net smelter return royalty on specific properties, enhancing its leverage in the market.
Through these developments, Dolly Varden Silver Corporation demonstrates a proactive approach to growth and exploration, navigating the complexities of the mining industry while focusing on enhancing its mineral resource portfolio. The combination of new financing and strategic acquisitions positions the company favorably for future exploration and development endeavors in one of Canada’s most promising mining regions.