Fury Gold Mines Ltd FURY

Dolly Varden Deal

[GoldenOrb]

December 6, 2021

 

 

DOLLY VARDEN AND FURY TO CONSOLIDATE EMERGING CANADIAN SILVER-GOLD DISTRICT IN THE GOLDEN TRIANGLE

Vancouver, BC – December 6, 2021 – Dolly Varden Silver Corporation ("Dolly Varden") (TSXV: DV) (OTCQX: DOLLF) and Fury Gold Mines Ltd ("Fury") (TSX: FURY) (NYSE American: FURY) are pleased to announce that the companies have entered into a definitive agreement dated December 6, 2021 (the "Purchase Agreement") pursuant to which Dolly Varden will acquire from Fury, through the acquisition of Fury's wholly-owned subsidiary, a 100% interest in the Homestake Ridge gold-silver project ("Homestake Project"), located adjacent to the Dolly Varden Project ("DV Project" and together with the Homestake Project, the "Kitsault Valley Project") in the Golden Triangle, British Columbia (the "Transaction").

The Homestake Project hosts a resource estimated to contain 165,993 ounces of gold and 1.8 million ounces of silver in the Indicated category and 816,719 ounces of gold and 17.8 million ounces of silver in the Inferred category (refer to further resource disclosure at the end of this release) within a 7,500 hectare land package located contiguous to and northwest of the DV Project. The close proximity of the deposits that make up the current mineral resource estimates, combined with common infrastructure in the region, is expected to generate substantial co-development synergies as these deposits are advanced in combination. The Transaction values the Homestake Project at CAD$50 million for which Dolly Varden will pay $5 million in cash and issue 76,504,590 Dolly Varden common shares to Fury, as further described below.

Conference Call and Webcast

A joint webcast will be held by management of both Dolly Varden and Fury to discuss the Transaction on Monday, December 6th, 2021 at 10 a.m. Pacific time / 1 p.m. Eastern time. Shareholders, analysts, investors and media are invited to join the live webcast by registering using the following link: https://services.choruscall.ca/links/dollyvardensilver20211206.html

A presentation to accompany the conference call and webcast can be accessed via either the Dolly Varden or Fury websites at www.dollyvardensilver.com or www.furygoldmines.com. A replay of the joint webcast will be available on both websites following the conclusion of the call.

[hallidas1]

Looks like FURY get about $50M for homestake 75.5m shares at 59cents/DV shares = $45m + $5m cash. Not bad + the upside if DV is successful.

[BullionGirl]

While not favoring the sale of Homestake, I think Fury's management executed an excellent deal on this! The best possible outcome for Fury. 

[BullionGirl]

I have been looking at Dolly Varden, and now Fury owns 36% of it!

[montydog]

Was always a good idea to sell Homestake, once it was acknowledged that Fury is a an Explorer not a Developer. And at $50m, that's a great price. Hats off to Tim for pulling this off with Fury's price being so depressed right now. Next stop, Eleanore South..... 

[compaq]

Eleanore South? A deal with Sirios possibly? C

[swingtrader45]

Not sure what the deal will be on the JV??? It does seem to me that Mr. Clark just picked up some better cards to sit at the table with though ;) GLTA

[CountOfMeltedCrisco]

They should have just announced a merger and gotten it over with now, because that's what's going to happen anyway, sooner or later. 

[swingtrader45]

I like it, hats off to Management - DV is solid and we are getting their shares at a reasonable price!!! I had hoped for more cash up front but hey $5mm is nothing to sneeze at in this environment. The market was paying $25million at most for Homestake and that was before the recent drilling successes at Comm. Bay and Eau Claire. Soooo, we get $50million for something the market gave us $25