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Hecla, Gipson loan Dolly Varden drill funds

 

Last updated 10/11/2015 at Noon



Dolly Varden Silver Corp. Oct. 1 reported the signing of a definitive documentation for the closing of a C$1.5 million senior secured loan from Hecla Canada Ltd. and Robert L. Gipson, two significant shareholders of the company.

The loan is to bear five percent annual interest and will be repayable after one year.

Dolly Varden has agreed to issue 1.25 million warrants to each lender.

Each warrant will entitle the holder to acquire one common share of Dolly Varden at C30 cents for a period of three years from the date of issuance.

Roughly C$1.2 million of the net proceeds will be used immediately on a 2,200-meter drill program targeting high-grade volcanogenic massive sulfide and epithermal styles of mineralization at the Dolly Varden Silver property in Northwest British Columbia.

In August, the company reported a maiden indicated resource of 31.8 million ounces of silver contained within 3.07 million metric tons of material averaging 321.6 grams per metric ton (10.34 ounces) silver for the Dolly Varden, North Star, Torbrit, and Wolf deposits at Dolly Varden.

The Kitsol area, which is located 1,000 meters away from the historical mining areas at Dolly Varden, is a priority target for the upcoming drill program.

One hole drilled at Kitsol in 2014 cut 26 meters grading 712 g/t silver starting at a drilled depth of 148 meters.

Concurrent with the loan closing, Allan Marter, Allen Ambrose and Ian He have resigned from Dolly Varden's board of directors.

The remaining board members are Tom Wharton, Don Birak and Rosie Moore.

 

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