Vancouver, British Columbia – October 30, 2023 – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden”) is pleased to announce that the Company has today entered into an agreement (“Subscription Agreement”) for a further strategic investment by Hecla Canada Ltd. (“Hecla”) whereby Hecla has agreed to subscribe for 15,384,616 common shares of the Company (“Common Shares”) at a price of $0.65 per Common Share for gross proceeds of $10 million (“Offering”). Upon completion of the Offering, Hecla will increase its shareholding in the Company to 15.7% from 10.6%, calculated on an undiluted basis.

Closing of the Offering is anticipated to occur on or about November 1, 2023. Closing of the Offering remains subject to customary closing conditions, including the approval of the TSX Venture Exchange (the “TSXV”).

Shawn Khunkhun, Chief Executive Officer of Dolly Varden Silver remarked, “Hecla’s support for Dolly Varden Silver’s high-grade Kitsault Valley Project in BC’s prolific Golden Triangle is validated with today’s financing news. Hecla is the world’s fastest growing established silver producer, the largest in the US and soon to be in Canada. We celebrate Hecla agreeing to increase their stake in Dolly from 10% to 15% and want to extend our gratitude for their financial and technical support of the Company and the project.”

In connection with the Offering, Dolly Varden has agreed with Hecla that the Company will not complete any further debt or equity financings for the remainder of 2023. Additionally, Dolly Varden has agreed that between January 1, 2024 and September 1, 2024, without the prior consent of Hecla, it will not complete any debt or equity financings other than equity financings for net proceeds to the Company of up to $15 million and provided that the issue price under such financing is greater than $0.65 per security. These restrictions do not capture customary exceptions such as the issuances of securities related to the Company’s equity based incentive compensation, the exercise of existing convertible securities and strategic transactions for non-cash consideration.

$6 million of the net proceeds from the Offering will be used for exploration expenditures, mineral resource expansion and related costs in the... see & read more on
https://dollyvardensilver.com/dolly-varden-silver-announces-10m-strategic-investment-by-hecla/