A syndicate of investors that includes Canadian mine financier Eric Sprott are buying $28 million worth of Dolly Varden Silver Corp. (TSX-V:DV, OTCQX: DOLLF) stock to advance its proposed silver mine in B.C.’s Golden Triangle.
Initially, the bought-deal financing was for $25 million, but today the company issued a press release stating it had been upsized by $3 million.
A syndicate of underwriters that includes Haywood Securities Inc. and Raymond James Ltd. will buy a combination of Dolly Varden securities -- $10 million in common shares at $1 per share, and $18 million worth of flow-through shares at $1.25 per share.
“Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the transaction,” Dolly Varden said in a press release.
Eric Sprott has a 10 per cent personal stake in Dolly Varden and the asset management company he founded, Sprott, is among the institutional investors that own 48 per cent of Dolly Varden Silver.
“The gross proceeds from the sale of (flow-through) shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project," the company said.
Dolly Varden’s Kitsault Valley project combines two silver deposits – Dolly Varden and Homestake Ridge. Dolly Varden acquired the Homestake Ridge project from Fury Gold Mines Ltd. (TSX,NYSE: FURY) in 2022 for $39.2 million.
(This story has been updated to reflect the upsizing of the originally announced bought deal.)
