NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Dolly Varden Silver Corporation (TSXV:DV) (OTCQX:DOLLF) (the "Company" or "Dolly Varden") is pleased to announce that it has entered into an agreement with Research Capital Corporation, as the sole bookrunner and co-lead underwriter, and together with Haywood Securities Inc. as co-lead underwriters, on behalf of a syndicate of underwriters, including Raymond James Ltd. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought-deal basis, a combination of securities of the Company ("Offered Securities") for aggregate gross proceeds to the Company of $25,000,000:
a) common shares of the Company ("Common Shares") at a price of $1.00 per Common Share for gross proceeds of $8,000,000, to be issued under a prospectus supplement to the Company's final short form base shelf prospectus dated April 25, 2023 ("Prospectus Offering"); and
b) Common Shares that will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act") (each, a "FT Share") at a price of $1.25 per FT Share for gross proceeds of $17,000,000, to be issued under a private placement ("Private Placement Offering", and together with the Prospectus Offering, the "Offerings").
Mr. Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the transaction.
The Company has granted to the Underwriters an option (the "Over-Allotment 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, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the 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 FT Shares will be used for further exploration, mineral resource expansion and drilling in 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 incurred on or before December 31, 2025 and renounced with an effective date no later ...
