/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Aug. 7, 2018 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV | U.S.: DOLLF) (the
"Company" or "Dolly Varden") is pleased to announce
that the Company intends to undertake a private placement financing
(the "Offering") to raise gross proceeds of $3.0 million from the sale of up to: (a)
5,454,545 Common Shares that qualify as "flow-through shares"
("Flow-Through Shares"), as defined under the Income
Tax Act (Canada), at a
price of $0.55 per share.
The 2018 exploration program budget of $8.9 million will be used primarily for
approximately 25,000 meters of diamond drilling. The net proceeds
of the Offering will be used for further exploration and mineral
resource expansion and delineation drilling of the Dolly Varden
silver property in northwestern British
Columbia, Canada, as well as ongoing working capital for
2018.
In connection with the Offering, the Company has agreed to pay a
finder's fee in respect of those purchasers introduced to the
Company by Eventus Capital Corp. (the "Finder"). The Finder
will receive a cash payment equal to 6% of the gross proceeds
received from purchasers under the Offering who were introduced to
the Company by the Finder.
The issuance of the Common Shares, Flow-Through Shares, and
payment of the Finder's fee are subject to the approval of the TSX
Venture Exchange ("TSXV"), receipt of any other required
regulatory approvals and other customary closing conditions.
Closing of the Offering is anticipated to occur on or about
August 24, 2018. Securities issued
under the Offering will be subject to a four-month hold period.
Pursuant to the ancillary rights agreement between Hecla Canada
Ltd. ("Hecla") and the
Company dated September 4, 2012 (the
"ARA"), Hecla will be
entitled to acquire Common Shares to maintain its pro rata equity
interest in the Company. If Hecla
exercises its pro-rata rights under the ARA, any securities issued
to Hecla will be in addition to
those issued as part of the Offering.
About Dolly Varden
Dolly Varden Silver Corporation is a mineral exploration company
focused on exploration in northwestern British Columbia. Dolly Varden has two
projects, the namesake Dolly Varden silver property and the nearby
Big Bulk copper-gold property. The 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 host numerous other high-grade deposits
(Eskay Creek, Brucejack). The Big
Bulk property is prospective for porphyry and skarn style copper
and gold mineralization similar to other such deposits in the
region (Red Mountain, KSM, Red
Chris).
The current mineral resource estimate at Dolly Varden, effective
date August 27, 2015, consists of
four deposits with an Indicated Resource of 3.07 million tonnes
grading 321.6 g/t Ag, for 31.8 million ounces of silver, plus
an Inferred Resource of 0.9 million tonnes grading 373.3 g/t
Ag, for 10.8 million ounces of silver. These resources were
estimated at a cut-off grade of 150 g/t Ag. For more details,
please refer to a NI 43-101 compliant Technical Report filed
on www.sedar.com and on the Company's website.
Ben Whiting, P.Geo., Vice
President of Exploration and Robert van
Egmond, P.Geo., Chief Geologist for Dolly Varden, serve as
'Qualified Persons' under National Instrument 43-101, and have
approved the scientific and technical information contained in this
news release.
The Company's Common Shares are listed and traded on the TSXV
under the symbol "DV" and on the OTCBB system under the symbol
"DOLLF".
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 completion of the Offering, the receipt of
TSXV and other regulatory approval with respect to the Offering,
the results of previous field work and programs and the continued
operations of the 2018 program, interpretation of the nature of the
mineralization at the project and that 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.
Note: Mineral resources are not mineral reserves, thus have not
demonstrated economic viability.
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 TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) 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.
