- Dolly Varden Silver (TSXV:DV) has secured a C$28 million bought-deal offering, including participation from renown mining investor Eric Sprott
- The company has identified a robust gold and silver resource at its flagship Kitsault Valley project with a multitude of targets likely to uncover more ounces
- Dolly Varden is a junior silver and gold miner active in British Columbia’s Golden Triangle
- Dolly Varden Silver stock has gained 63.64 per cent year-over-year and 217.65 per cent since 2019
Dolly Varden Silver (TSXV:DV) has secured a C$28 million bought-deal offering, including participation from renown mining investor Eric Sprott.
The junior silver and gold miner will offer C$10 million worth of common shares priced at C$1, C$18 million worth of flow-through shares priced at C$1.25, and a 15-per-cent over-allotment option through underwriters including Research Capital Corporation (bookrunner), Haywood Securities and Raymond James. An initial tranche is slated to close by September 4, 2024, followed by a second in mid-September.
Proceeds from the common shares will go toward working capital and general corporate purposes, while proceeds from flow-through shares will serve to advance exploration, mineral resource expansion and drilling at the Kitsault Valley project in northwestern British Columbia, the key driver behind Sprott’s new investment and approximately 10 per cent position in Dolly Varden (slide 5).
A project de-risked by major investors
Dolly Varden’s 163-square-kilometre Kitsault Valley project has managed to attract an insider-sized investment from Eric Sprott thanks to its high-grade silver and gold resource, which currently stands at:
- 34,731,000 ounces of silver and 165,993 ounces of gold indicated.
- 29,277,000 ounces of silver and 816,719 ounces of gold inferred.
These ounces reside in an area that has seen over US$5 billion in mergers and acquisitions since 2018 (slide 3), with the company proving out its land package’s potential for resource expansion with the drill bit, as evidenced by recent intersections from the Moose and Wolf targets measuring in the thousands of grams of silver per ton.
The junior miner’s 2024 drilling program will see it follow up on widespread high-grade mineralization encountered in 2023, making further resource growth a high-probability outcome. This thesis is shared not only by Sprott, but also by other major Dolly Varden shareholders whose involvement significantly de-risks a retail investment. These include:
- Fury Gold Mines (19 per cent), which has successfully identified multiple high-grade gold resources in Nunavut and Quebec.
- Hecla Mining (15 per cent), market capitalization US$3.78 billion, the largest silver producer in the U.S. and the third-largest in the world.
- Institutional owners (48 per cent) such as Fidelity and Sprott Inc., the latter a C$1.44-billion market capitalization investment and precious metals company originally founded by Eric Sprott.
Hecla and Fury Gold Mines have the right to buy shares outside of the offerings above to maintain their pro-rata equity interests in Dolly Varden.
About Dolly Varden Silver
Dolly Varden is a junior silver and gold miner active in British Columbia’s Golden Triangle.
Dolly Varden Silver stock (TSXV:DV) last traded at C$1.08 per share. The stock has gained 63.64 per cent year-over-year and 217.65 per cent since 2019.
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(Top photo of a drill rig at Dolly Varden Silver’s Kitsault Valley project in British Columbia: Dolly Varden Silver)