VANCOUVER, British Columbia, Oct. 01, 2025 (GLOBE NEWSWIRE) -- Dolly Varden Silver Corporation (TSXV:DV) (NYSE: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:
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
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
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" ...
