Dolly Varden completes $32.2 million bought deal financing
Dolly Varden Silver Corp. [DV-TSXV, DOLLF-OTCBB] said it has closed the second tranche of a bought deal offering that has raised $32.2 million. Part of the proceeds will be used for further exploration, mineral resource expansion, and drilling in the combined Kitsault Valley project in northwestern British Columbia.
The second and final tranche of the previously announced bought deal offering generated additional proceeds of $4.5 million from the issuance of 3.6 million flow-through shares. Aggregate proceeds raised from the completion of the offering (including gross proceeds raised from the completion of the first tranche of the offering on September 4, 2024), is $32.2 million, the company said.
That amount was raised from the issuance of 11.5 million common shares priced at $1.00 each for gross proceeds of $11.5 million and 16.56 common shares that qualify as flow-through shares” within the meaning of the Income Tax Act (Canada) at a price of $1.25 per flow-through share, generating gross proceeds of $20.7 million.
The offering was completed on a bought deal basis pursuant to an underwriting agreement dated August 21, 2024.
Dolly Varden shares eased 1.75% or $0.02 to $1.12 in early morning trading Friday. The shares trade in a 52-week range of $1.29 and 62 cents.
Dolly Varden Silver is focused on the Kitsault Valley Project, which combines the Dolly Varden Project and the Homestake Ridge Project, located in B.C.’s Golden Triangle area. The project is only 25 kilometres by road from tide water. The 163 square kilometre project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge, along with the past producing Dolly Varden and Torbit silver mines.
It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack.
The property is also considered to be an advanced exploration stage property with targets that are well understood. However, the company has said mine restarts will require the discovery of additional silver resources and the confirmation of historic resources that were known at the cessation of mining in 1959.
Dolly Varden recently said the 2024 exploration program on the Kitsault Valley Project has been expanded to 32,000 metres from the initially planned 25,000 metres. The company said the decision to expand the program was based on successful drilling and supported by a recently completed financing.
The company previously said drilling would be split approximately 50/50 between the Dolly Varden property and the Homestake Ridge property, with an overall project split of one third to the Homestake deposit area, one third to the Wolf deposit area and one third to project wide exploration targets with new discovery potential.