Dolly Varden seals C$7.2 million private placement of stock, warrants

Deal sells common shares, flow-through shares to fund debt repayment

By Devika Patel

Knoxville, Tenn., July 26 – Dolly Varden Silver Corp. said it completed a C$7.2 million private placement of stock and warrants. The deal priced for C$6 million on July 5.

The company sold 2,142,857 flow-through common shares at C$0.70 apiece, 9,115,861 common shares at C$0.62 per share and 101,762 warrants at C$0.43 per warrant. The prices per share are a 9.38% premium and a 3.13% discount, respectively, to the July 4 closing share price of C$0.64. The price per warrant is a 32.81% discount to that price.

Proceeds will be used to repay a C$2.5 million loan, eliminating all company debt, for exploration of the Dolly Varden silver property and for working capital purposes.

Based in Vancouver, B.C., Dolly Varden is a resource exploration company focused on the development of the Dolly Varden Silver Mines property in northwestern British Columbia.

Issuer:	Dolly Varden Silver Corp.
Issue:	Flow-through common shares, common shares
Amount:	C$7,195,591
Warrants:	No
Underwriters:	Raymond James Ltd. and Paradigm Capital Inc.
Pricing date:	July 5
Settlement date:	July 26
Stock symbol:	TSX Venture: DV
Stock price:	C$0.64 at close July 4
Market capitalization:	C$11.51 million
Flow-through stock
Amount:	C$1.5 million
Shares:	2,142,857
Price:	C$0.70
Common stock
Amount:	C$5,651,834
Shares:	9,115,861
Price:	C$0.62
Warrants
Amount:	C$43,758
Warrants:	101,762
Price:	C$0.43

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