Dolly Varden Silver Corp. [DV-TSXV] said Friday it has closed the final tranche of a $4.2 million private placement financing that will be used to fund further exploration and mineral resource expansion at the company’s flagship silver property in northwestern British Columbia.
The offering consisted of the sale of 7.6 million flow-through common shares at 55 cents per share. Flow-through shares issued in the final tranche (910,000 shares) are subject to a statutory hold period which expires in four months and one day. A total of 56,122,404 shares of the company are outstanding following the closing of the final tranche.
Dolly Varden shares eased 2.41% or $0.01 on the news to 40.5 cents. The 52-week range is 37 cents and $1.04.
The company has two projects, including the namesake Dolly Varden silver property and nearby Big Bulk copper-gold property. Since December, 2016, the company has been operating under the direction of management provided by the experienced Belcarra Group Management Ltd.
Dolly Varden owns 100% of the Dolly Varden Mines silver property. It covers 8,800 hectares and hosts four historically active mines.
The entire Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits since it comprises the same structural and stratigraphic setting that hosts numerous other on-trend, high-grade deposits, including Eskay Creek and Brucejack.
The property is 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.
In May, 2018, Dolly Varden announced details of its 2018 field exploration program, saying it was gearing up for 25,000 metres of drilling in 60 to 75 drill holes. The program was designed to focus on resource delineation and verification, particularly in areas of new discoveries that were made during the 2017 exploration season.
These included the Torbit North, Torbit East and Moose-Lamb targets, as well as areas around the Torbit and Dolly Varden deposits.
Dolly Varden is a member of the British Columbia Regional Mining Alliance (BCRMA), which was set up by the B.C. Government along with First Nations, and several exploration companies from B.C.’s northwest region to promote B.C’s mining opportunities internationally.
The Alliance is a partnership between the Province, the Tahltan Central Government (TCG), the Nisga’a Lisims Government (NLG), the Association for Mineral Exploration, Dolly Varden, Skeena Resources Ltd. [SKE-TSXV], IDM Mining Ltd. [IDM-TSXV] and GT Gold Corp. [GTT-TSXV].