Dolly Varden Silver Corp. (TSX: V.DV, Stock Forum) said it will proceed with a non-brokered private placement of up to 83.3 million shares at 18 cents a share, raising total proceeds of $15 million. The offering is anticipated to be completed in multiple closings, the company said in a press release.
Net proceeds of the offering will be used for working capital and for work programs at the company’s Dolly Varden Project in B.C.
Depending on the results of the company’s financing activities, work will progress with a first priority of establishing a year-round access to the known silver deposits in the Upper Kitsault Valley, near Stewart, B.C., followed by staged underground development and testing work.
Closing at 21 cents on Tuesday, Dolly Varden has a market cap of $16.8 million, based on 80.2 million shares outstanding. The 52-week range is 50 cents and 12 cents.