/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, June 5, 2019 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV | U.S.: DOLLF) (the
"Company" or "Dolly Varden") is pleased to announce
that due to strong investor demand it has increased the previously
announced non-brokered private placement financing (the
"Offering") to raise gross proceeds of up to $3.0 million from the sale of up to 12,000,000
common shares that qualify as "flow-through shares"
("Flow-Through Shares"), as defined under the Income
Tax Act (Canada), at a
price of $0.25 per Flow-Through
Share.
The Company will pay a finder's fee in respect of those
purchasers under the Offering introduced to the Company by Eventus
Capital Corp., Sprott Capital Partners LP, and Industrial Alliance
Securities Inc. (the "Finders"). The Finders will receive
either common shares in the Company or cash equal to 6% of the
gross proceeds received from purchasers under the Offering who were
introduced to the Company by the applicable Finders.
The issuance of the Flow-Through Shares, and payment of the
Finders' fees, 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 June 18th, 2019. Securities issued
under the Offering will be subject to a four-month hold period.
The net proceeds of the Offering will be used for further
exploration and mineral resource expansion and drilling of the
Dolly Varden silver property in northwestern British Columbia, Canada. The 2019 exploration
program will include diamond drilling and extensive soils
sampling.
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 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 2019 exploration 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 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.
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.
