/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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VANCOUVER, Sept. 14, 2017 /CNW/ - Dolly Varden
Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the
"Company" or "Dolly Varden") is pleased to announce
that it has completed its private placement financing originally
announced on August 29, 2017 (the
"Offering") to raise gross proceeds of approximately
$5.7 million from the sale of: (a)
2,739,726 common shares in the capital of the Company ("Common
Shares") at a price of $0.73 per
share; and (b) 3,529,411 Common Shares that qualify as
"flow-through shares" ("Flow-Through Shares") as defined in
the Income Tax Act (Canada)
at a price of $0.85 per
share.
The net proceeds of the Offering will be used for further
exploration and mineral resource expansion of the Dolly Varden
silver property in northwestern British
Columbia, Canada, as well as ongoing working capital for
2017. The 2017 exploration program budget has been extended from
$3.5 million to $6 million and
increased from 5,000 meters to approximately 12,000 metres of
diamond drilling.
In connection with the Offering, the Company will pay a finder's
fee in respect of those purchasers introduced to the Company by
Eventus Capital Corp. ("Eventus"). Eventus will receive a
cash payment equal to 6% of the gross proceeds received from
purchasers under the Offering who were introduced by Eventus, for a
total of approximately $299,387.96.
The Common Shares and Flow-Through Shares issued under the
Offering are subject to a statutory hold period which expires on
January 15, 2018. A total of
44,617,729 Common Shares are outstanding following the closing of
the Offering.
In connection with the Offering, Hecla Canada Ltd. ("Hecla") has
exercised its pre-emptive right under the Ancillary Rights
Agreement dated September 4, 2012
between the Company and Hecla to
maintain its ownership interest in the Company. Hecla has subscribed for 1,000,000 Common
Shares at $0.73 per share for
additional gross proceeds to the Company of $730,000.
About Dolly Varden Silver Corporation - Dolly Varden is a
mineral exploration company focused on the exploration of the Dolly
Varden silver property located in northwestern British Columbia, Canada. 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 (Eskay
Creek, Brucejack).
FORWARD-LOOKING STATEMENTS:
This release may contain forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance, or achievements of Dolly Varden to be
materially different from any future results, performance, or
achievements expressed or implied by the forward-looking
statements. Forward looking statements or information relates to,
among other things, the use of the proceeds of the Offering, belief
in the nature of the mineralization at the project, belief that the
mineralization on the project is similar to Eskay and Brucejack,
results of mineral resource estimate on the project, the potential
to grow the project, the potential to expand the mineralization,
the planning for further exploration work, the ability to de-risk
the potential exploration targets, and our belief about the
unexplored portion of the property. These forward-looking
statements are based on management's current expectations and
beliefs but given the uncertainties, assumptions and risks, readers
are cautioned not to place undue reliance on such forward-looking
statements or information. The Company disclaims any obligation to
update, or to publicly announce, any such statements, events or
developments except as required by law.
For additional information on risks and uncertainties, see the
Company's most recently filed annual management discussion &
analysis ("MD&A"), which is available on SEDAR at
www.sedar.com and on the Company's website at
www.dollyvardensilver.com. The risk factors identified in the
MD&A are not intended to represent a complete list of factors
that could affect the Company.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this news
release.
This release does not constitute an offer to sell or a
solicitation of an offer to buy of any securities in the United
States. The securities described herein have not been, and
will not be, registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), or any state
securities laws, and may not be offered or sold within the United States except in compliance with
the registration requirements of the U.S. Securities Act and
applicable state securities laws or pursuant to available
exemptions therefrom.
SOURCE Dolly Varden Silver Corp.