Dolly Varden Silver Announces $30 Million Bought-Deal Financing

Dolly Varden Silver Announces $30 Million Bought-Deal Financing


NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Dolly Varden Silver Corporation (TSXV: DV) (NYSE American: DVS) (FSE: DVQ) (the " Company " or " Dolly Varden ") is pleased to announce that it has entered into an agreement with Haywood Securities Inc., on its behalf and on behalf of Research Capital Corporation, as joint bookrunners and co-lead underwriters, and on behalf of a syndicate of underwriters (collectively, the " Underwriters "), pursuant to which the Underwriters have agreed to purchase, on a bough-deal basis, a combination of securities of the Company (" Offered Securities ") for aggregate gross proceeds to the Company of $30,034,000, consisting of:

  1. 2,300,000 common shares of the Company (" Common Shares ") at a price of $6.50 per Common Share, to be issued on a prospectus-exempt basis pursuant to the ‘listed issuer financing exemption' (" LIFE ") under applicable Canadian securities laws (the " LIFE Offering "); and
  2. 750,000 common shares of the Company that will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the " Tax Act ") that will be issued as part of a charity arrangement (each, a " CFT Share ") at a price of $9.42 per CFT Share, to be issued under the LIFE Offering; and
  3. 990,000 common shares of the Company that will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Tax Act (each, a " FT Share ") at a price of $8.10 per FT Share, to be issued on a prospectus exempt basis other than LIFE (the " Private Placement Offering ", and together with the LIFE Offering, the " Offerings ").

The LIFE Offering will be a combination of Common Shares and CFT Shares for gross proceeds of $22,015,000, and together with the Private Placement Offering will result in aggregate gross proceeds to the Company of $30,034,000. The Company has granted the Underwriters an option (the " Underwriters' Option ") to increase the size of the Offerings by up to an additional number of Offered Securities that in aggregate would be equal to 15% of the total number of Offered Securities to be issued under the Offerings, to cover over-allotments, exercisable at any time up to 2 business days prior to closing of the Offerings.

The net proceeds from the sale of Common Shares will be used for working capital and general corporate purposes. The gross proceeds from the sale of CFT Shares and FT Shares will be used for further exploration, mineral resource expansion and drilling at the combined Kitsault Valley project, located in northwestern British Columbia, Canada, as well as for working capital as permitted, as Canadian Exploration Expenses as defined in paragraph (f) of the definition of "Canadian exploration expense" in subsection 66.1(6) of the Income Tax Act (Canada) and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act (Canada) that will qualify as "flow-through mining expenditures" and "BC flow-through mining expenditures" as defined in subsection 4.721(1) of the Income Tax Act (British Columbia), which will be renounced with an effective date no later than December 31, 2025 to the initial purchasers of CFT Shares and FT Shares.

The Offerings are expected to close on or about October 23, 2025, or such other date as may be agreed to by the Company and the Underwriters (the " Closing "). Closing is subject to the Company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange and NYSE American (together, the " Exchanges ") to list, on the date of Closing, the Common Shares, the CFT Shares and the FT Shares.

The LIFE Offering will be made in accordance with the ‘listed issuer financing exemption' in Part 5A of National Instrument 45-106 – Prospectus Exemptions (" NI 45-106 "), to purchasers in any province of Canada, except Québec. The Common Shares and Charity FT Shares issued and sold under the LIFE Offering will not be subject to a ‘hold period' pursuant to applicable Canadian securities laws. There is an offering document related to the LIFE Offering that can be accessed under the Company's issuer profile at www.sedarplus.ca and on the Company's website at dollyvardensilver.com. Prospective investors should read this offering document before making an investment decision.

The FT Shares will be offered to accredited investors in each of the provinces of Canada pursuant to applicable prospectus exemptions in accordance with NI 45-106 and will have a statutory hold period of four months and one day from Closing.

In connection with the Offerings, the Underwriters will receive an aggregate cash fee equal to 5.0% of the gross proceeds of the Offerings. Eventus Capital Corp. is a special advisor to the Company.

Pursuant to existing agreements with the Company, Hecla Canada Ltd. (" Hecla ") and Fury Gold Mines Ltd. (" Fury ") will be entitled to acquire Common Shares in connection with the Offerings at a price of $6.50 per Common Share to maintain their respective pro rata equity interests in the Company. If Hecla or Fury exercise their pro rata rights, any Common Shares issued will be in addition to those issued as part of the Offerings.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. Including the Kitsault Valley Project, the Company has consolidated approximately 100,000Ha of prospective tenure in the Golden Triangle with 5 past producing high-grade silver mines including Dolly Varden, Torbrit, Porter Idaho, Mountain Boy and Esperanza historic mines. The 163 sq. km. Kitsault Valley Project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit 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 Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

For further information, please contact:

Shawn Khunkhun, CEO & Director

1-604-609-5137, www.dollyvardensilver.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. These forward looking statements or information relate to, among other things: receipt of all approvals related to the Offerings; the intended use of proceeds from the Offerings; the potential subscription of Hecla and Fury in connection with the Offerings and the expected terms and Closing of the Offerings.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the conditions to closing of the Offerings may not be satisfied, management's broad discretion regarding the use of proceeds of the Offerings, the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company's business and results of operations; and the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company's securities, regardless of its operating performance.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.


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Dolly Varden Silver Corporation

Dolly Varden Silver Corporation

Dolly Varden Silver Corp is a mineral exploration company. The company's primary business is the acquisition, exploration, evaluation, and development of exploration and evaluation assets. It is focused on the exploration of the Dolly Varden Silver property located in Northwestern British Columbia, Canada. The Dolly Varden Project contains the core of the Dolly Varden Mining Camp north of Alice Arm, within the Stewart Complex in northwestern British Columbia. The Dolly Varden Project consists of an area of approximately 8,800 hectares. The firm also owns an exploration property called the Big Bulk Copper-Gold Project.

Dolly Varden Silver Commences 2024 Drilling Program with Discovery-Focused Exploration Targets

Dolly Varden Silver Commences 2024 Drilling Program with Discovery-Focused Exploration Targets

Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (FSE: DVQ1) (the "Company" or "Dolly Varden") is pleased to announce that the 2024 Exploration Drill Program has started at its 100% owned Kitsault Valley Project. Three drill rigs have been mobilized and are testing exploration targets at Moose Vein, Chance Vein and the North Star Deposit step out. Objectives of the initial targets include testing for new discoveries and following up from high-grade silver mineralization encountered in the 2023 drilling program.

Drill meterage in the 2024 drill program will be split approximately evenly between the Dolly Varden Property and the Homestake Ridge Property, with an overall project split of one third each to the Homestake Silver deposit, to the Wolf deposit area and to project wide exploration targets with discovery potential.

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DV Silver CEO Shawn Khunkhun: "Value-creation is Done Through Growing Your Mineral Inventory"

DV Silver CEO Shawn Khunkhun: "Value-creation is Done Through Growing Your Mineral Inventory"

(TheNewswire)

April 29, 2024 TheNews w ire Global Stocks News On April 23, 2023 Dolly Varden Silver (TSXV:DV) (OTC:DOLLF) announced plans for its 2024 exploration drilling program at its 100% owned Kitsault Valley Project.

Key Highlights:

  • Three drill rigs mobilising

  • Initial 25,000 meters diamond drilling planned

  • Follow up on new discoveries

  • Focus on Homestake Silver and Wolf Deposits

  • Low snow packs allow for earlier than usual start in May

" The drill program will be split approximately 50/50 between the Dolly Varden Property and the Homestake Ridge Property," states DV, "with an overall project split of 1/3 to Homestake Silver deposit area , 1/3 to Wolf deposit area and 1/3 to project wide exploration targets with new discovery potential."

"Our drill results from Homestake Silver were among the highest-grade gold and silver intercepts anywhere in the Golden Triangle in 2023," states Dolly Varden CEO Shawn Khunkhun .

According to the Corporate Finance Institute (CFI) , the five key responsibilities of a CEO are: 1. Setting and Executing Organizational Strategy, 2. Build the Senior Leadership Team, 3. Making Capital Allocation Decisions, 4. Setting Vision, Values, and Corporate Culture and 5. Communicating Effectively with All Stakeholders .

In the junior markets, it is rare to find a CEO who excels at all five things. Commonly, #5 (Stakeholder Communication) is a glaring weakness. Typically, you find biotech geniuses, technology disrupters and brilliant geologists who are awkward, clumsy communicators.

Shawn Khunkhun was appointed the DV SIlver CEO position on February 18, 2020 , during a period of depressed metal prices.  Since then, he has proved to be demonstratively good at all five parts of his job, including communication to the investment community.


Click Image To View Full Size

Wolf Vein

At the Wolf Vein, drilling is planned to delineate the width and extent of the southerly plunge of wider and higher-grade silver mineralization. Step out holes that define the trace of the plunge are spaced so that any new mineralization can be included in a future resource update . The Company will implement directional drilling technology with the objective of more cost effective and accurate exploration at Wolf, particularly for deep holes.

Figure 2 . Previously released result highlights (2022 and 2023) on Wolf Vein long section looking northwest showing open zones for follow up and trace of wider, higher-grade plunge as black line.

Homestake Silver

The program planned for Homestake Silver will start with follow up drilling on the newly discovered gold zone at the northern extent of deposit, where coarse-grained native gold in late-stage quartz-carbonate veins (Figure 3.) returned grades of 1,335 g/t Au and 781 g/t Ag over 0.68 meters within a wider interval of stockwork grading 79.49 g/t Au and 60 g/t Ag over 12.45 meters in drill hole HR23-389.

Figure 3 . Visible Gold in quartz carbonate vein from drillhole HR23-389 at 410.00m depth.

The second part of Homestake Silver drilling will be resource expansion and upgrade holes that target the low angle, north dipping plunge of wide and high-grade gold and silver mineralization encountered in 2023 (Figure 4.).

Figure 4 . Homestake Ridge Long section looking southwest showing previous results of wide, higher grade plunge and new gold zone at Homestake Silver with 2024 target areas.

Exploration Targets including Moose Vein

The Moose Vein is located 1.5 km up north of the Wolf Vein and is interpreted to be hosted within a similar cross cutting structure as Wolf.

Other Exploration targets on both the Homestake Ridge and Dolly Varden properties include targets within the 5.4 km long area between the southern end of Homestake Silver and Wolf Vein.

Shawn KhunKhun recently spoke with Kerry Lutz, a lawyer and entrepreneur who is now the CEO of "The Financial Survival Network", providing "an alternative to Wall Street's always-be-buying mantra."

"Primary silver mines are rare," Khunkhun told Lutz. "They only represent about 28% of the market. We're located in Canada, that has stable mining laws.  We are up North in British Columbia where there are not a lot of tourists.  We've demonstrated size through acquisition and discoveries."

"This has led to a lot of notable shareholders," continued Khunkhun. "Including Hecla, Eric Sprott and institutions like Fidelity."

On November 2, 2023 Dolly Varden Silver announced that it has closed a deal where Hecla Canada invested $10 million in DV Silver , raising its stake in DV Silver from 10.6% to 15.7%.

Hecla Mining has a market cap of USD $3.13 billion and trades on the New York Stock Exchange (NYSE). It is on track to produce 17 million ounces of silver in 2024 .

"Hecla's increased ownership stake is a benefit to us," Khunkhun told Guy Bennett, the CEO of Global Stocks News. "Hecla has demonstrated it is a sticky shareholder. They're looking to expand their North American silver portfolio. "


Click Image To View Full Size

"V alue-creation is done through growing your mineral inventory, or growing your production," Khunkhun told Lutz, "Dolly Varden is trading at about $1 an ounce in the ground.  The average company trades about $4 an ounce in the ground. If I can find more silver for pennies an ounce in the ground, there is a likelihood we're going to be revalued."

"Our priority with this early [drilling] start is to continue with step-outs as well as infill drilling to confirm continuity of the potentially bulk-mineable mineralization ," stated Khunkhun in the April 23, 2024 press release.

"Further south, silver mineralization at Wolf remains wide open for expansion and this seasons' introduction of directional drilling technology will allow for highly accurate placement of drill intercepts."

The currently gold/silver price ratio is 85.

" For the whole of the 20th century, the average gold-silver ratio was 47:1," reports Investopedia . "In the 21st century, the ratio has ranged mainly between the levels of 50:1 and 70:1.

With gold trading at USD $2,350/ounce – 95% of its April 12, 2024 all-time-high of $2,440 - and silver trading at USD $27/ounce, about 60% of its all-time high, it may be an advantageous time in to invest in silver equities.

Disclaimer: Dolly Varden Silver paid GSN CND $1,500 for the research, creation and dissemination of this content.

Contact: guy.bennett@globalstocksnews.com

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Copyright (c) 2024 TheNewswire - All rights reserved.

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Dolly Varden Silver Outlines 2024 Resource Expansion and Discovery-Focused Exploration Drill Program

Dolly Varden Silver Outlines 2024 Resource Expansion and Discovery-Focused Exploration Drill Program

Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the "Company" or "Dolly Varden") is pleased to announce plans for the 2024 exploration drilling program at its 100% owned Kitsault Valley Project. An initial 25,000 meters of diamond drilling is planned, starting with three drills. The focus will be on following up on new discoveries as well as stepping out from wide, higher-grade intercepts from the 2023 drilling, particularly at the Homestake Silver and Wolf deposits. Mobilization will be in the first week of May, allowing for an earlier start on exploration than previous years due to a low snowpacks.

The drill program will be split approximately 50/50 between the Dolly Varden Property and the Homestake Ridge Property, with an overall project split of 1/3 to Homestake Silver deposit area, 1/3 to Wolf deposit area and 1/3 to project wide exploration targets with new discovery potential.

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