/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Oct. 22, 2020 /CNW/ - Dolly Varden Silver
Corporation (TSXV: DV) (OTC: DOLLF) (the
"Company" or "Dolly Varden") is pleased to announce
that, due to strong investor demand, the Company intends
to increase the size of its non-brokered private placement offering
(the "Offering") to $7,000,000 consisting of the sale of up to
7 million common shares that qualify as "flow-through shares"
as defined under the Income Tax Act (Canada) at a price of $1.00 per share (the "Offered
Shares").
The proceeds raised by the Company from the sale of the Offered
Shares will be used to incur eligible "Canadian exploration
expenses" that are "flow-through mining expenditures" (as such
terms are defined in the Income Tax Act (Canada), related to exploration of the
Company's mineral properties located in British Columbia.
Eventus Capital Corp. and Mackie Research Capital Corp.
have been appointed as finders in connection with the Offering. The
Company may pay a cash finder's fee of 6% of the gross proceeds
received by the Company from investors introduced to the Company by
such finders.
The issuance of the Offered Shares under the Offering and the
payment of the finder's fee are subject to the approval of the TSX
Venture Exchange, receipt of any other required regulatory
approvals and other customary closing conditions. Closing of the
Offering is anticipated to occur on or about November 13, 2020. Securities issued under the
Offering will be subject to a four-month-and-one-day statutory hold
period.
The net proceeds of the Offering will be used for further
exploration, mineral resource expansion and drilling at the Dolly
Varden silver property in northwestern British Columbia, Canada, as well as for
working capital as permitted.
Pursuant to the ancillary rights agreement between Hecla Canada
Ltd. and the Company dated September 4,
2012, Hecla will be
entitled to acquire common shares at a price of $0.89 per common share to maintain its pro rata
equity interest in the Company. If Hecla exercises its pro rata rights under the
ancillary rights agreement, any common shares issued to
Hecla will be in addition to those
issued as part of the Offering.
The issuance of the Offered Shares to certain subscribers under
the Offering who are insiders of the Company will be considered a
related party transaction under Multilateral Instrument 61-101. The
Company expects to rely on exemptions from the formal valuation and
minority shareholder approval requirements provided under sections
5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis
that participation in the Offering by insiders will not exceed 25%
of the fair market value of the Company's market
capitalization.
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.
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).
Dolly Varden is also a member of the British Columbia Regional
Mining Alliance, a cooperative effort between First Nations,
Industry and the BC Provincial Government, to promote mining
activities and investment in the northwestern region.
Additional information about the Company and its activities may
be found on the Company's website www.dollyvardensilver.com and
under the Company's profile at www.sedar.com.
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,
managing disruption from COVID-19 guidelines, 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 the 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
beliefs 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 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.
SOURCE Dolly Varden Silver Corp.
